Thailand Auto Finance Market Research Report: Ken Research

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How Thailand Auto Finance Market Is Positioned?

The auto finance market has played an imperative role in the overall GDP contribution in the Thai economy with a valuable contribution of ~ in terms of auto loan disbursed by the end of 2019 (Provisional). The market compasses similar trends fairly in-line with the domestic vehicle sales market, qualitatively & quantitatively. After witnessing a burst in 2015 the market is currently placed in its recovery phase registering a slow-moving growth rate.

Major operations are conducted by three types of entities namely, Banks & Subsidiaries, Captive Finances, and Non-Bank Financial Institutes. Numerous new business strategies were adopted by major players including the launch of “Cash Your Car”, First Car Buyer The scheme, and Floor Plan Model with competitors indulging in maintaining extensive collaborations with luxury dealers like Volvo for product sales expansion.Thailand Auto Finance Market

The Auto finance market has increased in terms of loan disbursed to approximately THB ~ billion in 2019P from THB ~ billion in 2014 registering a CAGR of ~% during the same period. The credit disbursed in the Thailand Auto Finance Industry has increased from THB ~ billion in 2013 to THB ~ billion in 2019P. The number of vehicles financed increased from ~ in 2014 to ~ in 2019P. There have been various factors responsible for the growth. One of the major factors has been the consistent growing level of sales of used vehicles in Thailand along with a vast array of financing options being offered by lenders. Moreover, convenience in lending is being improved as online lending ecosystems contribute to the rising total addressable market in vehicle finance and lenders offer highly customized products catered to the borrower’s needs. The Issuance of digitally Advanced Products, being offered by various Fintech Institutions, also acts as a Catalyst to the Growth of Industry.

Thailand Auto Finance Market Segmentation

By Vehicle Financed (2019): In Thailand, a sale is done for both new and used vehicles. Financing of New Car was observed to dominate the market during 2019P. New Vehicle Finance enjoys a majority share in the market owing to the advantages that come handy with the new vehicles that include higher resale value and better financing schemes. Used vehicles capture a comparatively lower share in the market in terms of Units Financed.

By Tenure of Loan: The loan tenure selected by the customer depends on factors such as the price of the car, income level of the customer, flexible scheme options and other social factors such as family size and lifestyle of the individual. The most preferred loan the time period in the Thailand Automotive market for the year 2019P is for 2 years.

By Type of Financing: The research showcased that Passenger vehicle finance is the leader in terms of financing acquired and amounts to ~ of the total loan outstanding in 2019P. After this, the Commercial vehicle segment of the market covers, ~ of the market and Registration pledge covers similarly ~ of the market, while the rest ~ of the total loan outstanding amounts to floor plan loans.

By Type of Vehicle financed: It was witnessed that out of Passenger loan outstanding, new Vehicle loans amount to ~ while Used Vehicle loans amount to ~ and motorcycle loans amounts to the only ~ of the total Passenger vehicle loan outstanding market.

By (Banks, NBFCs, and Captives): Commercial banks have accounted for a Major Share in the Overall Car Finance Market of Thailand on the basis of vehicles Financed. The second position in the market was captured by Captives and the third is captured by nonbanking finance Companies, which operate in the market for Automotive financing in 2019P.

Competitive Landscape In The Thailand Auto Finance Market

Competition in the market is moderately fragmented. The Major lending institution types in the market are Banks, Captives, Multi Finance Companies, they hold a moderately Fragmented share in the lending space for New Cars. However, the top 6 players in the market make up for almost 50% of the share, but the market of Captives and NBFC’s are majorly fragmented and totally amounts to more than 150+ players in the market. Competing Parameters: These entities majorly compete on the basis of diversification of services; interest rates charged, expanded distribution network & regional presence and enhanced customer relationship. One of the chief competing parameters is digitalization that has completely changed the market along with major strategies used to attract customers & expand business including Cash Your Car and others. The major players include Thanachart Bank, Ayudhya Bank, Siam Commercial Bank, TISCO Bank Capital, Asia Sermkij Leasing, Nakhon Luang Capital Limited, Thitikorn PCL and others.

Thailand Auto Finance Market Future Outlook and Projections

Over the forecast period, the Thailand auto finance market is expected to be positive if there is a continuous need for Car among the population. Multiple fin-tech startups have also come up in the country’s financial sector which poses a threat to conventional finance companies and banks. These startups have developed products to augment the digitalization of the banking sector. This includes digital payments, online lending, online aggregation, and remote banking facilities which made the customer lending process uncomplicated and simple further facilitating the car finance market in the country. Banks and Captives are expected to continue their leading position in the market due to their vast networks and range of products. In addition to that, the Thailand market is likely to witness a decline in Car sales which threatens the growth of a number of loans issued in the future.

Key Segments Covered:-

By Vehicle Financed

New Vehicles

Used Vehicles

By Lender Institutions

Banks

Captives

Non-Banking Finance Companies (NBFCs)

By Type of Finance

Passenger Vehicle

Commercial vehicles

Registration Pledge

Floor Plan

By Type of Vehicle

New Auto

Used Auto

Motorcycles

By Loan Tenure between New and Used Autos

One Year

Two Years

Three Years

Four Years

Five Years or more

Key Target Audience

Existing Auto Finance Companies

Banks

OEM Dealerships

Captive Finance Companies

Credit Unions

Private Finance Companies

New Market Entrants

Government Organizations

Investors

Automobile Associations

Automobile OEMs

Time Period Captured in the Report:

Historical Period: 2014-2019P

Forecast Period: 2019P-2024F

Key Companies Covered:

Banks

Thanachart Bank

Ayudhya Bank

Siam Commercial Bank

TISCO Bank

Kiatnakin Bank

Kasikorn Bank

ICBC Bank

Krungthai Bank

NBFCs

Muangthai Capital

Asia Sermkij Leasing

Nakhon Luang Capital Limited

Thitikorn

Summit Capital

Group Lease

Aeon Thana Sinsap

G Capital Public Limited

Thai Ace Capital

SGF Capital

JMT Network

Phatra Leasing Company

Mitsib Leasing

Captives

Toyota Leasing Thailand

Mercedes-Benz leasing

BMW Financial Services

MITSU Leasing Thailand

Ford Services Thailand Company Limited

Honda Leasing Thailand Company Limited

Hyundai Motor Thailand Company Limited

KIA Motors Finance

Mazda Financial Services Limited

Suzuki Motor Thailand Company Limited

Volvo Financial Services

Tri Petch Isuzu Leasing Company Limited

Land Rover Financial Services

Mini Financial Services

Porsche Financial Services

Thai Rung Union Auto Public Company Limited

Key Topics Covered in the Report:-

Thailand Auto Finance Market Overview and Genesis

Thailand Auto Finance Market Ecosystem, 2019P

Value Chain Analysis of the Thailand Auto Finance Market, 2019P

Thailand Finance Market Value Chain Analysis

Thailand Auto Finance Market Size, 2013-2019P

Thailand Auto Finance Market Segmentation, 20113-2019P

Major Trends and Development in Thailand Auto Finance Market

Issues and Challenges in Thailand Auto Finance Market

Regulatory Framework in the Thailand Auto Finance Market

Snapshot on Thailand Automotive Sales and Manufacturing Market, 2014-2019P

Ways to Finance Automotives in Thailand (Bank Finance or Multi Financing Companies, Personal Finance, Lease Financing)

Vendor Selection Process for Auto Finance Company in Thailand

Competitive Landscape Containing Company & Product Profiles in the Thailand Auto Finance Market

Financial Penetration of various OEM Brands

Thailand Finance Market Future Outlook and Projections, 2019P-2024

Analyst Recommendations for the Thailand Auto Finance Market

For More Information On The Research Report, Refer To Below Link:-

Thailand Auto Finance Market Analysis

Related Reports by Ken Research:-

Vietnam Auto Finance Market Outlook to 2023 – by Loan Tenure, by Type of Institution (Commercial Banks and Non- Banking Financial Institutions) and by Type of Vehicle (Passenger and Commercial)

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.

Indonesia Auto Finance Market Outlook To 2024: Growing Prominence Of Captive Finance Companies Backed By Surging Auto Sales To Drive Market Growth

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249

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