Philippines Auto Finance Market Outlook to 2026

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The report “Philippines Auto Finance Market Outlook to 2026- Driven by change in consumer spending, ease in provision of loans, improving technology and government support” by Ken Research provides a comprehensive analysis of the potential of Auto Finance Industry in Philippines. The report also covers overview and Population Analysis of the industry, market size in terms of revenue; market segmentation by Category of Lenders, by Type of Vehicles, by Type of Ownership, by Category of Vehicles, by Loan Tenure, by Geography; Trends and developments, challenges and issues, Decision Making Parameters; SWOT analysis; Strengths and Weaknesses; Government Policies and regulatory framework, COVID-19 Impact, Auto Finance Market Aggregators, Digital Disruptions. The report concludes with future market projections & Outlook and analyst recommendations.

Detailed Analysis on the Philippines Auto Finance Market:

Philippines is 2nd fastest growing vehicle market in ASEAN with Commercial vehicles with higher market share and the market has observed the maximum growth in the automotive industry in ASEAN Countries, with automotive loan outstanding growth in the last five years mainly due to population increase and economic growth. The Auto Finance Market is in the Growing Phase with Banking Institutions and NBFCs leading the Market and Online Aggregators Platforms entering the Market with the Introduction of Online Personal Loan aggregator Platforms in the market to provide ease in vendor selection process like BSP pay, Pesopay are among the top aggregator, Better Technological Infrastructure in the form of growing Auto Finance platforms and rising usage of AI and ML for better Auto lending experience will lead the future growth of the industry. Innovative Business Models such as Subscription Lending & shared ownership may grow in future to increase car financing. The market is still expected to a good growth in Auto Finance Market of Philippines.

Philippines Auto Finance Market:

By Category of Lenders (By Credit dispersed), 2021 & 2026F: Most of the people in Philippines will opt to take Auto Loans from Banks owing to lower Interest Rates and large variety of loan options provided by them. As of 2021, Metrobank Car Loan for New Cars at one of the lowest rates in Philippines with one month advance. The most common payment methods used by people in Philippines while making monthly repayments in Banks are Cash over the counter, Cheque or Retail Bank Transfer.

By Type of Vehicle (By Credit dispersed), 2021 & 2026F: Most of the loan provided are to the Two and Three-Wheeler sections. Four-Wheeler segment is expected to see a high growth rate with the growing income of the people and growing population.

By Type of Ownership (By Credit dispersed), 2021 & 2026F: In the Philippines Auto Market, Used Cars are best to shop around for banks with low interest rates. The Overall Market of number of cars financed is expected to see a good growth in CAGR owing to improving financial infrastructure, higher convenience and customer centric approaches. The majority percentage of the market is dominated by the Used cars.

By Category of Vehicles (By Credit dispersed),  2021 & 2026F: The number of passenger cars sold in the Philippines slightly increased in 2021 compared to the previous year. With a vehicle unit sale, the majority of the share in 2021, Toyota is expected to have one of the highest market shares in the selected region and will still continue to acquire a major share in the market in 2022. With the Improvements on internet infrastructure, in order to maximize the potential of e-commerce in Southeast Asia will bolster the demand for the commercial vehicle.

By Loan Tenure (By Credit dispersed),  2021 & 2026F: In Philippines Auto Finance Market, Higher proportion (~XX%) of the New Vehicles sold are financed as compared to the used vehicles.  In 2021, Most of Old Vehicles sold are taking a loan tenure of 25-48 Months to Repay Loan due to the reasons of Accessible to wider credit types, Slower Depreciation, Smaller Loan amount offered to the people.

By Geographical Location (By Credit dispersed),  2021 & 2026F: NCR region takes the lead based on auto loans credit disbursed across Philippines. The National Capital Region (NCR), also known as Metropolitan Manila, is the country’s political, economic, and educational center. The smallest region in the Philippines, it is the most densely populated region which is home to million Filipinos. And NCR Region is expected to continue to Take Lead in Philippines Auto Finance Market.

Competitive Landscape in Philippines Auto Finance Market:

Philippines Auto Finance Industry is expected to witness growth in future owing to reasons such as Increasing demand for automotive, growing income levels, new and innovative business models and more. Major Institutionsinclude Security Bank, Robinson Bank, First United Finance and Leasing Corporation, East West Bank, Asia Link Finance Corporation. Other players in the market includes Yulon Finance Philippines Corporation, MetroBank, Welcome Bank, TFSPH, Bank of Philippines Island, BDO Unibank, Malayan Insurance, Land Bank of Philippines, Development Bank of Philippines, Union Bank, Sterling Bank of Philippines, Pen Bank, the Philippine Bank of Communications. Auto Finance Players in Philippines should focus on aspects like designing new operating models, expanding pipeline with predictive analytics, and gaining efficiencies through use of Artificial Intelligence and Machine Learning to grow their business. Companies in Auto Finance Market in Philippines are competing based on Interest Rate Offered, Loan Tenure, Deals Offered, Convenience and Extra Fees Charged.

Philippines Auto Finance Market Future Outlook and Projections:

Philippines Auto Finance Market is Expected to grow at a  good  CAGR  in between 2021 and 2026F, one of the major determinants for the surging growth in coming years is the Increasing Population and growing income levels leading to rise in sales of cars , the rise in Auto Outstanding Loans in Philippines, the increase in Auto Loan Outstanding is expected a high growth rate between 2021F-2026F, High-Mid range car models are expected to witness strong success as the majority of car buyers segment includes the High Income people leading to larger Loan amount per customer, Expectation of high growth in car sales especially in Green cars as the government is building the infrastructure like the charging point at public parks . Higher digitization and usage of Artificial Intelligence and Machine Learning to improve customer convenience. New Business Models such as Subscription Lending, Shared ownership financing are coming into play which will lead the way for high growth rate in the Philippines Auto Finance Market.

Key Topics Covered in the Report:

• Philippines Population Analysis, 2021
• Automotive Transport Overview
• Ecosystem of Philippines Auto Finance
• Philippines Auto Finance Market Evolution
• Philippines Auto Finance Market Value Chain Analysis
• Types of Car Loans in Philippines Auto Finance Industry
• Philippines Auto Finance Market Segmentation
• Philippines Auto Finance Market Segmentation by Type of Vehicle, 2021-2026F
• Philippines Auto Finance Market Segmentation by Ownership of vehicles, 2021-2026F
• Philippines Auto Finance Market Segmentation by category of Vehicles, 2021-2026F
• Philippines Auto Finance Market Segmentation by Category of Lenders, 2021-2026F
• Philippines Auto Finance Market Segmentation by Geographical Location
• Future Sizing outlook and Projections
• Philippines Automotive Sales Projection
• Future Segmentation outlook and Projections
• Philippines Auto Finance Industry Analysis
• Decision Making Parameter for Selecting Car Loan Vendor
• Issues and Challenges in Philippines Auto Finance Industry
• SWOT Analysis of Philippines Auto Finance Industry
• COVID Impact on the Philippines Auto Finance Industry
• Competition Scenario in Philippines Auto Finance Market
• Government Policies affecting Philippines Auto Finance Industry
• Digital disruptions in Auto Finance
• Analyst Recommendation