Thailand Auto Finance Industry Research Report, Market Outlook, Auto Finance Mar

Posted by kenresearch10 on January 28th, 2019

Improved technology, development of financial infrastructure, expanded the regional presence of supply-side entities, favorable government regulations, high household disposable income, growing consumer confidence index, increased use of used cars and rising demand from commercial vehicles have been the key factors driving growth in Thailand auto finance market.

First Car Buyer scheme came up in 2011 by the populist government in Thailand. It was an incentive introduced to encourage the low-income earners to buy or reserve a car and benefit from the generous tax bonuses provided. The tax refunds amounted to up to 100,000 baht for a medium sized car. Approximately 1.1 million vehicles were bought under this scheme in 2016. The lock-up period for the scheme was 5 years. Motorcycle sales shot up during the same period as a result of high prices of agricultural products which have driven the farm income and usage by farmers, caused partly by the rice-pledging scheme and partly by high oil prices which averaged at USD 106.8 per barrel during 2011-2013.

The report titled “Thailand Auto Finance Market Outlook to 2023 - by Loan Tenure, By Commercial Banks, Non- Banking Financial Institutions, Auto OEMs Captives; By New and Used Passenger and Commercial Vehicles” suggests that the growth key is in the hands of the Thailand government to unlock infrastructural and policy barriers restraining the industry. This would lead the market to grow to register a CAGR close to 4% on the basis of credit disbursed during 2018-2023.

The majority of the expansion in hire-purchase sales in these years came from financial institutes and from captive finance, with the latter group playing an increasingly important role in the sector after 2011. Following the boom period, the market showcased a sharp slowdown in growth in the auto hire purchase sector in 2014 and 2015. Following the burst, the market is yet to fully recover however by the end of 2018; it had set to generate positive returns. The first half of 2016 experienced poor results in the automobile as well as the motorcycle market owing to the weak household purchasing power during the same.

The auto hire-purchase sector tends to align itself with the domestic market for automobiles. Given its relationship with this market, the sector naturally plays an important role in the overall growth of the economy. During the last 5 years, the hire-purchase market has been sluggish and thus lenders (supply side entities) have relied on financing other range of products and have extended reach into related markets. This has included supplying ‘car for cash’ credit, which is fundamentally a loan tenable on a vehicle, and ‘floor plan’ arrangements, which provide financing to auto dealers for orders and purchases of vehicles and for working capital. Between 2011 and 2013, the sector experienced high levels of growth owing to the incentive provided by the first-car buyer scheme.

The penetration rates for both new and used cars have increased for the Thailand auto sector owing to the increased household disposable income. The penetration rates have increased also because of the fall in the fuel prices at USD 0.68 in 2016 per liter from USD 0.9 per liter in Thailand in 2015. The prices have seen a general decline along the review period from 2013-2018. Major financing companies reported strong financial performance with quality auto-loan growth and healthy liquidity positions.

The Non-performing loans (net to total loans) were recorded at 1.19%. Financing companies adopted the 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. The lending interest rates in Thailand decreased to 4.3% per annum in 2018 and recorded a declining CAGR of -3.3% during 2013-2018. The falling interest rate is an indication of favorable financing conditions for the citizens and this is thus an important aspect of increased financing. All of these factors have contributed towards a positive growth witnessed by the sector.

Keywords:

Thailand Car Finance Market

Thailand Vehicle Finance Market Overview

Thailand Car Finance Industry

Thailand Auto Finance Market

Thailand Auto Credit Disbursed

Thailand Auto Loan Outstanding

Thailand Auto Finance History

Thailand Vehicle Finance Ecosystem

Thailand Car Loan Value Chain

Thailand Auto Finance End User

Thailand Auto Finance Product

Thailand Auto Finance Major Players

Thailand Auto Finance Trends

Thailand Auto Finance Institutions

Thailand Auto Loan Challenges

Thailand Car Loan Forecast

Thailand Auto Finance Major Players

Loan Sale Purchase Thailand

Loan Outstanding Thailand

New Car Finances Thailand

Old Car Finance Thailand

Leasing Market Thailand

Auto Leasing Market Thailand

Bank Auto Finance Thailand

Non-Bank Institutes Thailand

Captives Thailand Auto Finance

Motorbike Loan Thailand

Truck Loan Thailand

Key Segments Covered:

Type of Vehicles (Passenger Vehicles and Commercial Vehicles on the basis of Credit Disbursed and Auto Loan Outstanding)

New and Used Cars (On the Basis of Number of Vehicles Financed and Auto Loan Outstanding)

Type of Institutions (Banks & Subsidiaries, Captive Finances and Non-Bank Financial Institutes on the Basis of Auto Loan Outstanding)

Loan Tenure (1 Year, 2 Years, 3 Years, 4 Years, 5 and more years on the basis of Auto Loan Outstanding)

Key Target Audience:

Existing Auto Finance Companies

Banks & Subsidiaries

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:

Financial Year 2013-2018: Historical Period

Financial Year 2019-2023: Future Forecast

Companies Covered:

Banks:

Thanachart Public Company Limited, Siam Commercial Bank Public Company Limited, Kasikorn Bank Public Company Limited, Kiatnakin Bank Public Company Limited, Bank of Ayudhya Public Company Limited and TISCO Bank Public Company Limited

Subsidiaries:

Ratchthani Leasing Public Company Limited, Thanachart Group Leasing Company Limited, Ayudhya Capital Auto Lease Public Company Limited, Ayudhya Capital Services Company Limited, Krungsri LEASING Services Company Limited, Ngern Tid Lor Company Limited, TISCO Leasing Company Limited, TISCO Tokyo Leasing Company Limited, Kasikorn Leasing Company Limited AND Kiatnakin Leasing Company Limited.

Captive Finances:

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 And Thai Rung Union Car Public Company Limited

Non-Banks:

Ayudhya Capital Services Company Limited, Ayudhya Capital Auto Lease Public Company Limited, Asia Sermkij Leasing Public Company Limited, Ngern Tid Lor Company Limited, Jmt Network Services, SGF Automotive, Thai Ace Capital, Aeon Thana Sinsap Public Company Limited, Summit Capital Leasing Company Limited, Nakonluang Capital Public Company Limited, J Money Company, G Capital Public Company Limited and Thiensurat Leasing Company Limited

To Know more, Click On the Link:-

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/thailand-auto-finance-market/179514-93.html

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

Sales@kenresearch.com

+91-9015378249

Also See: Thailand Auto, Public Company, Company Limited, Auto Finance, Thailand, Services, Public
Link To Directory
Top Searches - Trending Searches - New Articles - Top Articles - Trending Articles - Featured Articles - Top Members

Copyright 2019 Uberant.com
516,395 total articles and counting.