Philippines Auto Finance Market Outlook to 2027
Driven by the growing demand for used vehicles and financing penetration in the sector
Region:Asia
Author(s):Vrinda Garg
Product Code:KR1332
June 2023
133
About the Report
The report provides a comprehensive analysis of the potential of auto finance industryin Philippines. The report covers an overview and genesis of the industry, market size in terms of auto loan disbursed.
The report has market segmentation which include segments by category of lenders, by nature of vehicle, by type of vehicle financed, by type of vehicle financed by banks, by type of vehicle financed by NBFCs, by loan tenure; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.
Market Overview:
According to Ken Research estimates, the Philippines Auto finance Market –has increased in 2022 at a CAGR of 3.7% owing to growing demand for used vehicles and financing penetration in the sector.
- Launch of new models and initiatives to support electric vehicle adoption in Philippines by automakers stimulate the consumer interest in autos. Companies have started focusing on increasing the volume along with preserving the margin. Promos are focused on value enhancement than price.
- Security Bank Corporation’s consumer finance arm SBF has partnered with Grab Philippines to offer personal loans to Grab users, driver-partners, and merchant-partners through the Grab super app.
Key Trends by Market Segment:
By Category of Lenders: Banks are preferred over NBFCs and captives due to their lower interest rates and longer repayment tenure.
By Nature of Vehicle: Banks tend to focus on brand new vehicles as it gives them higher value at their disposal and to maintain a portfolio level for repossession as advocated by central banks. NBFCs tend to penetrate used car markets as banks are highly active in new car financing. Also, the market has lower margins and NBFCs do not want to compete against banks.
Competitive Landscape
All major banks in the Philippines finance all passenger vehicles to cater to the diverse needs of borrowers and to remain competitive in the market. The Market is moderately fragmented. BDO, PNB, RCBC, Maybank and Metrobank can be positioned as leaders in Philippines Auto Finance Market owing to their large customer base, demand for auto loans and higher digital penetration.
Future Outlook
The Philippines Auto Finance Market witnessed significant growth during the period 2017-2022, NBFCs will emerge as the major auto financier in the future owing to the lack of regulatory limits on them unlike Banks and NBFCs in providing auto loans. New cars are likely to meet the latest fuel efficiency standards and also have attractive financing deals by banks. Low interest rates provided by banks will make it less expensive to finance a new car than a used one.
Scope of the Report
|
Philippines Auto Finance Market Segmentation |
|
|
By Category of Lenders |
Banks NBFC’s Captive Financing Companies |
|
By Nature of Vehicle |
New Used |
|
By Type of Vehicle Financed |
Four Wheelers Two and Three Wheelers Buses, Trucks & LCVs |
|
By Loan Tenure |
12-24 months 25-48 months 49-60 months |
|
By Type of Vehicle (Automobile)Financed |
New Passenger Vehicle New Commercial Vehicle |
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report
- Investors
- Auto Finance Providers
- Insurance Companies
- Car Manufacturers
- Financial Service Provider
- NBFCS
- Fin-Tech Companies
- Government Bodies & Regulating Authorities
Time Period Captured in the Report
- Historical Period: 2017-2022
- Base Period: 2022
- Forecast Period: 2022-2027
Companies
Major Players Mentioned in the Report
- BPI
- PNB
- Security Bank
- RCBC
- PS Bank
- Metro bank
- BDO
- East West
- Maybank
Table of Contents
1. Executive Summary
1.1 Auto Finance Market: Overview, Segmentation, Competition Scenario, Drivers, Challenges 2017-2027
1.2 Auto Finance Market: Analyst Recommendations
2. Country Overview of Philippines
2.1 Country Demographics, 2022
2.2 Philippines Economic Analysis, 2022
2.3 Philippines Financial Sector Analysis, 2022
3.1 Regulatory Authorities
3.2 Financial Access & Awareness Analysis
3.3 Account & Payment Channels
3.4 Financing Market Overview
4. Philippines Auto Finance Market
A. Philippines Automotive Market, 2017- 2022
4.1 Vehicle Registration Data, 2017-2022
4.2 Automotive Sales of New and Used Vehicles, 2017-2022
4.3 Average Price, Down Payment and Financing Percentage of New and Used Vehicles, 2022
B. Philippines Auto Finance Market Overview
4.4 Market Overview
4.5 Ecosystem
4.6 Overview of Aggregators in Philippines Auto finance Market
4.7 Value Chain Analysis
4.8 Cash Flow Analysis
4.9 Dealership Relationship and Online Aggregator Model
4.10 Customer journey for Vender Selection Process and Age Wise penetration
C. Market Size of Auto Finance Market, 2017-2022
4.11 Market size on the basis of Loan Disbursed and Number of vehicles Financed
4.12 Market size on the basis of Loan Outstanding and Number of non-performing Loans (Banks)
D. Market Segmentation of Auto Finance Market, 2022
4.13 Loan Disbursed : On the Basis of type of financing unit (Banks, NBFCs & Captives)
4.14 Loan Disbursed : On the Basis of type of Vehicle financed (New & Used)
4.15 Loan Disbursed : On the Basis of type of Vehicle financed (New & Used) by Banks & NBFCs
4.16 Loan Disbursed : On the Basis of type of Vehicle financed (2W, 3W, 4W, Buses & Trucks)
4.17 Loan Disbursed : On the Basis of type of Vehicle financed (2W, 3W, 4W, Buses & Trucks)
by Banks & NBFCs
4.18 Loan Disbursed : On the Basis of tenure Vehicle financed (New & Used)
4.19 Loan Disbursed : On the Basis of tenure Vehicle financed (Passenger & Commercial Vehicle)
4.20 Number of Loan Financed : Regional Segmentation (Luzon, Visayas, Mindanao)
4.21 Number of Loan Financed : Regional Sub-Segmentation
4.22 Loan Outstanding : On the Basis of type of financing unit (Banks, NBFCs & Captives) &
type of Vehicle financed (New & Used)
4.23 Loan Outstanding : On the Basis of type of Vehicle financed (2W, 3W, 4W, Buses & Trucks) by Market & NBFCs
E. Industry Analysis of Auto Finance Market
4.24 SWOT Analysis
4.25 Trends & Developments
I4.26 ssues & Challenges
4.27 Growth Drivers
4.28 Requirements for obtaining car & motorbike loans from banks in Philippines Auto finance Market
4.29 Decision Making Parameters for Selecting Car Loan Vendor
4.30 Covid-19 Impact
F. Overview of Online Platforms
4.31 Company Profile: AutoDeal
4.32 Company Profile: Moneymax
G. Competition Scenario of Auto Finance Market, 2022
4.33 Competitive Scenario of Philippines Auto finance Market, 2021- 2022
4.34 Competitive Landscape and Market Positioning of Players in the market
4.35 Heatmap
4.36 Major Players and their auto loan terms and Minimum Gross Family Income Requirements
4.37 Interest Rate on Vehicles
4.38 Down Payment
4.39 Recent Developments, 2020-2022
4.40 Strengths & Weakness
4.41 Major Partnerships
4.42 Promotion Technique & Offers
4.43 Payment Method Analysis
4.44 Insurance Services
4.45 Cross-Comparison
H. OEM Penetration in Auto Finance Market
4.46 Objectives of Captives
4.47 OEM Penetration in Philippines Auto finance Market, 2022
4.48 Car Leasing in the Philippines
4.49 Toyota Company Profile
G. Future Market Analysis of Auto Finance Market, 2022-2027
4.50 Market size on the basis of Loan Disbursed and Outstanding, 2022-2027
5. Market Segmentation on Loan Disbursed : On the Basis of type of financing unit (Banks, NBFCs & Captives), type of Vehicle financed (New & Used) , type of Vehicle financed (2W, 3W, 4W, Buses & Trucks), 2027
6. Market Segmentation on Loan Disbursed : Flow of new & used Vehicle financed
(New & used) by Banks & NBFCs, 2027
7. Market Segmentation on Loan Disbursed : Flow of type of Vehicle financed (2W, 3W, 4W,
Buses & Trucks) by Banks & NBFCs, 2027
7.1 Loan Outstanding : On the Basis of type of financing unit (Banks, NBFCs & Captives),
7.2 type of Vehicle financed (New & Used) & type of Vehicle financed (2W, 3W, 4W, Buses & Trucks)
by Market & NBFCs 2027
H. Analyst Recommendations of Auto Finance Market
7.3 Recommendation on Financing
7.4 Target Population Analysis
7.5 Forecasting mix based on regions
7.6 Recommendation for adoption of Flexible Payment Plan
7.7 Corporate Strategy
8. Banks Competition Analysis, 2022
A. Timeline of Major Banks
B. Company Profiles of BDO, BPI, RCBC, Maybank & Eastwest Banks
C. Financial Analysis
8.1 Business Sustainability Test, 2021
8.2 Loan, Deposit & NPL Analysis
8.3 Relative Market Share Analysis
8.4 Financial Comparison Analysis, 2022 (Q3)
8.5 Financial Comparison Analysis, 2021
9. Research Methodology
10. Disclaimer
Research Methodology
Step: 1 Identifying Key Variables:
Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step: 2 Market Building:
The list of Auto Finance Companies with a presence in Philippines was compiled after extensive study. Exhaustive secondary research is done on the Philippines auto finance Market. Gathered information on this industry from several industry articles, company websites, blogs, and industry reports.
Step: 3 Validating and Finalizing:
Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.
Step: 4 Research output
Our team then conducted mystery calls to the brand dealers operating in these sectors in Philippines to verify the information obtained from the interviews. The team also made an effort to comprehend their operational and financial data, including revenue, business models, geographical presence, focus areas, business verticals, and services offered among others
Frequently Asked Questions
01 How big is Philippines Auto Finance Market?
The Philippines Auto Finance Market size by credit disbursed grew at a cagr of 12% from 2017-2022.
02 Who are the major Players in Philippines Auto Finance Market?
Major players operating in the Philippines Auto Finance market include Asialink Finance Corporation, Yulon Finance Philippines Corporation, Security Bank, MetroBank, Welcome Bank, Toyota Financial Services Philippines Corporation (TFSPH), Bank of Philippines Island etc.
03 What are the Key Factors driving the Philippines Auto Finance Market?
Designing new operating models, expanding pipeline with predictive analytics, and gaining efficiencies through use of Artificial Intelligence and Machine are projected to drive the growth of the Philippines Auto Finance market.
04 Which segment dominated the Philippines Auto Finance Market?
In 2021, Most of Old Vehicles sold are taking a loan tenure of 25-48 Months dominating the market.
05 What is the expected growth rate of Philippines Auto Finance Market?
The Philippines Auto Finance market is expected to grow by a robust cagr of 8% from 2022-27.
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