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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

Region:Asia

Author(s):Aditya

Product Code:KR935

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Published On

December 2019

Total pages

188

About the Report

Click Here for Latest report on: Thailand Auto Finance Market Outlook to 2026

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 the 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 challenges, 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
 
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 valuable contribution of ~ in terms of auto loan disbursed by the end of 2019. 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. Thailand's auto finance market size in terms of the 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 Vehicles financed. It was observed that out of total vehicle financed, new vehicles captured the 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 a loan for 1 year followed by loan for 3 years, 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 3rd 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 were observed as the market leader in the Thailand Auto finance market and govern around the 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 the 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 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.
 

Thailand Auto Finance Market Future Outlook

Thailand's car finance market is likely to witness a boom in terms of the auto loan outstanding, credit disbursed and a number of vehicles financed especially owing to fast-paced developments on the technological front with the development of the Eastern Economic Corridor (EEC). This corridor would facilitate automobile availability in a market with the 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 customer's friendly outlook and enable customers to operate auto loans financial services from home, without any hassle.
 

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

Products

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

Companies

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 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

Table of Contents

1. Executive Summary

1.1Market Size and overview
1.2Market Segmentation
1.3Competitive Analysis
1.4Future Analysis and Projections

2. Research Methodology

2.1Market Definitions
2.2Abbreviations
2.3Market Size and Modeling
2.4General Approach – Market Sizing
2.5Market Sizing – Thailand auto finance market
2.6Variables (Dependent and Independent)
2.7Multi Factor Based Sensitivity Model
2.8Regression Matrix
2.9Limitations
2.10Final Conclusion

3. Market Overview and Genesis

3.1Market Overview (Market Stage, Market Size by Credit Disbursed, Market Size by Auto Loans Outstanding, Market Size by Number of 3.2Automobiles Financed, Market Nature, Regional Presence, Types of Customers and Floor Plan Arrangements)
Market Genesis
3.3Key Operating Parameters (Growth Drivers, Major Loans and Services Offered, Average Interest Rate and Market Restraining Factors)
3.4Change in Auto Loan over the Years (As a part of Overall Consumer Loans)

4. Market Ecosystem, 2019P

4.1(Major Banks and Subsidiaries, Non-Banks Institutions, Captive Finances, OEMs / Auto Manufacturers and Automobile Dealers)
4.2Thailand Auto Finance Major Players market Evolution, 1900-2019P
(Including Year of Genesis, Name of Entity, Type of Entity and Market Positioning)
4.3Change in Sector Related Policies & their Effect on Thailand Auto Finance Market, 2010-2020

5. Market Value Chain Analysis, 2019P

(Initiation Process and Commission Sharing Process)
(Analysis of Major Companies and their Relationship with Passenger Car Dealer-ships and Nature of Business, 2019P)
(Value Chain Analysis for Thailand Auto Finance Market Entities-Banks& its Subsidiaries, Captive Finances, Non- Banks and Customers Including Role, Number, Major Players, and Types of Customers, Payment Methods and others, 2019P)
(Value Chain Analysis for Thailand Auto Finance Market Including Customer Acquisition, Application Terms, Screening, Insurance, Credit Execution, Payment Method and Collection Reminder Process, 2019P)
5.1. Online Aggregators in Thailand Auto Finance Market, 2019P
(Including Overview, Key Features, Institutions Covered, Key Factors and Key Website Performance Indicators)
5.1.1. Money Guru
5.1.2. Go Bear
5.2. Vendor Selection Process in Thailand Auto Finance Market, 2019P
(Including Interest Rates, Collaterals, Documentation, Tenure, Payment Methods and Credit Ratings)
5.3. Major Pain Points of Various Entities In Thailand Auto Finance Market, 2019P
(Including Customer’s Perspective, Bank’s Perspective and Non-Bank’s Perspective)
5.4. Ways To Finance A Car In Thailand Auto Finance Market (Bank Finance Or Multi Financing Companies, Personal Finance, Lease Financing), 2019P
(Including Consumer Financing, Leasing and Factoring)

6. Market Size (By Credit Disbursed, Auto Loan Outstanding & Number of Automobiles Financed), 

2014-2019P
(Market Analysis: Key Trends & Growth Factors, Lending Interest Rates, Market Challenges, Financial Penetration Rates, Major Associations, Key Business Strategies and Key Selection Parameters)

7. Market Segmentation, 2014-2019P

7.1. By New and Used vehicle, 2014-2019P
On the Basis of Number of Vehicles Financed (In Units), 2014-2019P
7.2. By Tenure of Loan (1 Year, 2 Years, 3years, 4 Years, 5 Years or More), 2019P
On the Basis of Loan Disbursed, 2019P
7.3. By Financing Type (Passenger Vehicles, Commercial vehicles, Registration Pledge and Floor Plan) 2014-2019P
on the Basis of Loan Outstanding and Credit Disbursed, 2014-2019P
7.4. By Type of Vehicle Financed (New Cars, Used Cars and Motorcycle), 2014-2019P
On the Basis of Passenger Vehicle Credit Disbused and Loan outstanding, 2014-2019P
7.5. By Type of Institutions (Banks and Subsidiaries, Captive Finance and Non-Banks), 2018 and 2019P

8. Trends and Developments

Decreasing Prime Lending Rate
Growing Consumer Confidence Index
End of First Car Buyer Scheme
Digital lending for better Outreach
8.1. Recent Developments, Company Positioning, Digitalization & Major Business Strategies, 2019P

9. Issues and Challenges

9.1High Levels of Household Debt
9.2Shifting Preferences of People
9.3Increase in Operating Costs

10. Government Regulation

10.1. Regulatory framework for Multi Finance Companies
10.1. Acts Governing Thailand Financial Institutions, 2019P
10.1. License Requirements to Operate as a Financial Institution in Thailand
10.2. Membership Requirement in other Organizations
Credit bureau
Credit Associataion
10.3. General Requirement and Documentation for New Car Financing
Identification documents
10.4. General Requirement and Documentation for Used Car Financing
10.5. Comparative Analysis of Old Regulations (2012) and new Regulations (2018) in Thailand

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

(Including Overview, Automotive Clusters, Exports, Major Auto Manufacturers, Motorcycle Assemblers, Auto Parts Makers, Thailand Automobile R&D Centers and Strong Supporting Organizations)
11.1. Market Share of Major Automobile Passenger Car Companies (Toyota, Honda, Mazda and Others) on the Basis of Sales Volume, 2018 & 2019P
11.1. Market Share of Major Automobile Commercial Car Companies (Toyota, Isuzu, Ford and Others) on the Basis of Sales Volume, 2018 & 2019P
Financial Penetration of Major OEM brands (Toyota, Isuzu, Honda and Others) on the basis of Number of cars financed out of total cars Sold, 2019P

12. Competitive Scenario Analysis, 2019P

(Including Market Nature, Market Stage, Barriers to Entry, Major Entities, Number of Entities, Market Positioning, Types of Services and Major Competing Parameters)
12.1. Market Share of Major Institutions (Banks, Captives and NBFC’s) on the Basis of Loan Outstanding, 2018 & 2019 - Including strengths and weaknesses
Major Banks and Subsidiaries, 2018 and 2019P
Major Captive institutions, 2018 and 2019P
Major NBFC’s, 2018 and 2019P

13. Company Profiles of Major Banks (Along with their subsidiaries), Captives and NBFC’s

Commercial Banks
(Including Company Overview, Business Strategy, Products and Services, Number of Employees, Car Finance, Recent Developments, Credit Rating, Capital Adequacy Ratio and Company Financials)
13.1. Thanachart Bank Public Company Limited (TBANK)
13.2. Bank Of Ayudhya (Krungsri)
Ayudhya Capital Auto Lease Public Company Limited (Krungsri Auto)
13.3. Siam Commercial Bank (SCB)
13.4. Thai Investment And Securities Company limited (TISCO)
13.5. Kasikorn Bank Public Company Limited (KBANK)
13.6. Kiatnakin Bank
Captive Companies
13.7. Major Captive Finance Institutions (Toyota, Mercedes-Benz, BMW, Ford, Mitsubishi, Isuzu, Honda, Mazda)
NBFCs
13.8. Muangthai Capital
13.9. Asia Sermkij Leasing
13.10. Aeon Thana Sinsap

14. Future Outlook and Projections, 2019P-2024F

14.1. By Credit Disbursed & Auto Loan Outstanding, 2019P-2024F
14.2. By New and Used vehicle, 2019P-2024F
On the Basis of Number of Vehicles Financed (in Units), 2019P-2024F
14.3. By Tenure of Loan (1 Year, 2 Years, 3years, 4 Years, 5 Years or More), 2019P and 2024F
On the Basis of Loan Disbursed, 2019P
14.4. By Type of Financing (Passenger Vehicles, Commercial vehicles, Registration Pledge and Floor Plan) 2019P & 2024F
14.5. By Type of Vehicle Financed (New Cars, Used Cars, Motorcycle), 2019P & 2024F
On the basis of Passenger Vehicle Credit Disbursed and Loan outstanding, 2019P & 2024F
14.6. By Type of Institutions (Banks and Subsidiaries, Captive Finance and Non-Banks), 2019P & 2024F

15. Analyst Recommendations

Disclaimer

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