Thailand Auto Finance Market Outlook to 2024: Ken Research

The report titled “Thailand Auto Finance Market Outlook to 2024: Growing Prominence of Captive Finance Companies and Loan Portfolio of Banks acting as a Catalyst for Market Growth” provides a comprehensive analysis of auto finance market in Thailand. The report focuses on overall market size in terms of credit disbursed, auto loan disbursed, auto loans outstanding and Number of automobiles financed; Thailand auto finance market segmentation by new and used vehicles, by tenure of loan (1 year, 2 years, 3 years, 4 years and 5 years or more), by type of financing (passenger vehicles, commercial vehicles, registration pledge and floor plan), by type of vehicle financed (new cars, used cars and motorcycles) and by type of institutions (banks and subsidiaries, captive finance and non-banks). The report also covers overall comparative landscape including strengths and weaknesses and cross comparisons; trends and growth drivers, issues and challenge, market share in terms of sales volume, government regulations and company profiles. The report concludes with future projections and analyst recommendations highlighting major opportunities and cautions.

Thailand Auto Finance Market Overview and Size

The auto finance market has played an imperative role in overall GDP contribution in the Thai economy with a value contribution of ~ in terms of auto loan disbursed by the end of 2019. The market compasses similar trends fairly in-line with 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. Thailand auto finance market size in terms of auto loan outstanding increased during 2014-2019P thus, registering a positive CAGR during the same period. The growth factors include lowering lending rates, growth in new & used car sales, expanding household disposable income and higher farm income along with progressive technological advancements being mandated by the government and the adoption of digitalization by all major financial institutions in the country.

Thailand Auto Finance Market Segmentation

By New and Used Vehicles Financed: Market segmentation is done on the basis of sales of New and Used Vehicle financed. It was observed that out of total vehicle financed, new vehicles captured majority of the market in 2019P, while used vehicles captured the remaining market of the overall financed vehicle.

By Loan Tenure (1 Year, 2 Years, 3 Years, 4 Years and 5 Years or More): During 2019P, it was observed that the most preferable loan tenure was of 2 years and ~ of the credit disbursed was given out for 2 years. After this people preferred taking loan for 1 year followed by loan for 3 year, loan for 4 years captured and the rest of the market was given for 5 years or more.

By Type of Financing (Passenger Vehicles, Commercial Vehicles, Registration Pledge and Floor Plan): The research showcased that Passenger vehicle finance is the leader in terms of financing acquired in 2019P. After this, the Commercial vehicle segment of the market grabbed the second position and registration pledge covered the 3^rd position of the market, while the rest of the total loan outstanding amounts to floor plan loans.

By Type of Vehicle financed (New Cars, Used Cars and Motorcycle): It was witnessed that out of passenger loan outstanding, new vehicle loans dominated whereas, the used vehicle loans and motorcycle loan segment captured the remaining market in 2019.

By Type of Institutions (Banks and Subsidiaries, Captive Finance and NBFCs Non-Banking Financing Institutions): Banks and subsidiaries segment was observed as the market leader in the Thailand Auto finance market and govern around majority of the market share in 2019P. It was further observed that captive finance institutions and NBFC’s collectively captured the remaining market in terms of loan outstanding during 2019.

Competitive Landscape of Thailand Auto Finance Market

Competition in the market is moderately fragmented. The Major lending institution types in the market are Banks, Captives and 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 half of the market share, but the market of Captives and NBFC’s are majorly fragmented and totally amounts to more than 150+ players in the market. These entities majorly compete on the basis of diversification of services; interest rates charged, expanded distribution network and regional presence and enhanced customer relationship. One of the chief competing parameter is digitalization that has completely changed the market along with major strategies used to attract customers & expand business including Cash Your Car and others.

Thailand Auto Finance Market Future Outlook

Thailand auto finance market is likely to witness boom in terms of auto loan outstanding, credit disbursed and number of vehicles financed especially owing to fast pace developments on the technological front with the development of the Eastern Economic Corridor (EEC). This corridor would facilitate automobile availability in market with development of new plants, massively increasing the number of automobiles manufactured. This is expected to increase the number of total vehicles financed in the country. Customers would witness new schemes in the market focusing primarily on customers friendly outlook and enable customers to operate auto loans financial services from home, without any hassle.

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

Auto mobile Associations

Auto mobile 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 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

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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.

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