“The banks and non-banking institutions are moving away from the capital region towards less penetrated areas by increasing their branches to tap the underserved market.”
Analysts at Ken Research in their latest publication “Philippines Auto Finance Market Outlook to 2023 – By Banks and NBFCs including Captive Units (Auto Loan Portfolio and Motor Cycle Loan Portfolio), By New and Used Motor Vehicles, By Motor Vehicle Financed (Passenger and Commercial Vehicles), By Loan Time Period” believe that the Philippines Auto Finance demand will grow in the near future on the back of growing digitalization and market innovation, customized auto loan product, focusing towards marketing and promotion, providing commercial and used vehicle financing and other factors. The market is further anticipated to register a positive CAGR of ~17% in terms of AUM during the forecasted period 2018-2023.
Growing Economy: The Philippines is one of the fastest growing economies in the world with major focus shifting from agriculture to services and manufacturing. Amid this transition, major focus is being given to automobile sector to increase its contribution towards GDP. As auto manufacturing sector advances costs are coming down making automobiles more accessible for Philippines locals. The country has a motorization rate of just 38 vehicles per 1,000 people which is way less than other ASEAN countries. This number is growing with more Filipinos entering the middle class in a flourishing economy and aiming to own a personal vehicle.
The penetration rates for both new and used cars has increased for the Philippines auto sector thus, leading to high purchase of automobiles owing to the increased household disposable income of the citizens. Also, the Philippines Gross National Income per capita has increased considerably in the past one decade, allowing more households to own an automobile of their own. Increasing purchasing power in terms of household income has allowed the citizens to meet the minimum household income criteria of auto loan institutions which have led to massive increase in auto loan book and new loan acquisition rate. The advent of online aggregators such as www.autodeal.com.ph has made potential buyers more aware of the prevailing prices in the market for sales of automobiles. This has given them higher bargaining power to customers to make better informed decisions while negotiating prices with car dealers in both new and second hand sales of cars and others.
Strong Financial performance of Major Players and non-banking institutions: Major financing companies reported strong financial performance with quality auto-loan growth and healthy liquidity positions. Financing companies adopted risk-averse strategy in vehicle financing by prioritizing loans for the best-selling cars while penetrating a second-hand vehicle market for an optimal risk-return trade-off. Some of the leading banking institutions include Metro Bank, BDO, Ps Bank, East West Bank, the Philippine National Bank (PNB Saving Bank), Bank of the Philippine Islands, RCBC, May Bank Philippines Incorporated and others whereas some of the leading NBFCs in the Philippines include Toyota Financial Services Philippines Corporation, MAFS, Unistar Credit and Finance Corporation, Radio Wealth finance Company and others.
Key Segments Covered:-
By Type of Motor Vehicle Loans Provided By Banks and NBFCs
Auto Loan Portfolio
Motor Cycle Loan Portfolio
By Type of Motor Vehicle
New Vehicle
Pre-Owned Vehicles
By Type of Motor Vehicle Financed
Passenger Vehicles
Passenger Cars
Utility Vehicles
Sports Utility Vehicles
Two Wheelers
Commercial Vehicles
Trucks
Buses
Trailers
By Time Period of Loan between New and Pre-Owned Motor Vehicles and
One Year
Two Year
Three Year
Four Year
Five Years and More
By Vehicles Registered Under Various Regions
Key Target Audience:-
Existing Auto Finance Companies
Banks & Subsidiaries
Auto OEM Captive Finance Companies
Non Banking Financial Institutions
New Market Entrants
Automobile Financing Companies
Government Organizations
Investors
Automobile Associations
Automobile Original Equipment Manufacturer
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2018-2023
Key Companies Covered:-
Banking Institutions
Metro Bank
BDO Bank
PS Bank
East West Bank
Philippine National Bank
Bank of the Philippine Islands
Maybank Philippines Incorporated
Others
Non-Banks and Dealership Financing
Toyota Financial Services Philippines Corporation (TFSPH)
MAFS
Unistar Credit and Finance Corporation
Radio Wealth finance Company
Others
Keywords:-
Philippines Auto Finance Market
Auto Finance Market In Philippines
Philippines Auto Finance Market Revenue
Philippines Auto Finance Market Major Players
AUM Auto Loan Philippines
Auto Loan Book Market Philippines
Auto Loan Product Philippines
Bus Finance Market Philippines
Used Car Finance Market Philippines
Car Finance Industry Philippines
Motor Loan Market Philippines
Motor Loan Book Philippines
Motor Cycle Loan Market Philippines
Auto Lease Market Philippines
Philippines Auto Finance Product
For more information on the research report, refer to below link:-
Philippines Auto Finance Market
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
