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
Region:Asia
Product Code:KR750
January 2019
163
About the Report
Market Overview: Thailand's auto finance market played an essential role in the overall GDP contribution in the Thai economy. After witnessing a burst in 2015, the market is currently placed in its recovery phase registering a slow-moving growth rate. Major operations are conducted by three types of entities namely, banks & subsidiaries, captive finances, and non-bank financial institutes. Numerous new business strategies were adopted by major players including the launch of “Cash Your Car”, First Car Buyer Scheme, and Floor Plan Model with competitors indulging in maintaining extensive collaborations with luxury dealers like Volvo for product sales expansion.
Market Size: Thailand's auto finance market on the basis of total credit disbursed has expanded registering a CAGR of close to 4% during 2013-2018. The number of automobiles financed witnessed a CAGR of close to 6% owing to an increase in the household disposable income and more affluent middle class in the economy. The two-wheeler market experienced growth with the rise in motorcycle demand fueled by Thai farmers. The growing consumer confidence index, constant prime lending rates, growing car sales and evolving used car market has been the major growth factors. In terms of total auto loans outstanding, the market registered a CAGR of almost 5% during the review period.
Market Segmentation
By New and Used Cars: New vehicles have led the market share on the basis of both, credit disbursed and auto loan outstanding in 2018. By Type of Institutions: By auto loan outstanding, banks & subsidiaries have led the market in 2018. This was followed by captive finances which are growing at a faster pace due to low interest charged. The lowest share was comprised of NBFIs.
By Loan Tenure: On the basis of the auto loan outstanding, 3-year loan tenure has been the most popular segment in 2018. This was followed by 2-year loan tenure which is usually taken up for second hand vehicles. This was followed by 4 years and 1-year tenure while 5 years and above was the least popular segment in the market in 2018.
Competitive Landscape
Future Analysis and Projections
Thailand's auto finance market is likely to witness a boon in terms of a number of auto loans sanctioned especially on the technological front with the development of the Eastern Economic Corridor (EEC). The digital front would witness new schemes that are more customers friendly. Moreover, the rise in commercial activities engaging automobiles such as the use of vehicles in public transport, agricultural and industrial use, are expected to be the potential prospects of growth in the next five years.
Key Topics Covered in the Report
- Thailand Auto Finance Market Value Chain
- Thailand Auto Finance Market Ecosystem
- Thailand Auto Finance Market Overview
- Thailand Auto Finance Market Size on the Basis of Credit Disbursed, 2013–2018
- Thailand Auto Finance Market Size on the Basis of Auto Loan Outstanding, 2013-2018
- Thailand Auto Finance Market Trends & Challenges
- Thailand Auto Finance Market Segmentation by Type of Vehicles (Credit disbursed, and Auto Loan
Outstanding) - Thailand Auto Finance Market Segmentation by New and Used Vehicles (Number of Vehicles Financed
and Auto Loan Outstanding) - Thailand Auto Finance Market Segmentation by Type of Institutions (Auto Loan Outstanding)
- Government Regulations in Thailand Auto Finance Market
- Strengths of Major Players in Thailand Auto Finance Sector
- Company Profile of Major Players in Thailand Auto Finance Sector
- Future Outlook and Projections in Thailand Auto Finance Market (2019-2023)
- Growth Opportunities in Thailand Auto Finance Market
- Future Market Segmentation of Thailand Auto Finance Market
- SWOT Analysis of the Thailand Auto Finance Market
- Analyst Recommendations
Products
Key Target Audience
- Existing Auto Finance Companies
- Banks & Subsidiaries
- Auto OEM 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 Historical Period - Year 2013-2018
- Financial Year Future Forecast - 2019-2023
Companies
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
Table of Contents
1. Executive Summary
1.1. Market Size and overview
1.2. Competitive Analysis
1.3. Future Analysis and Projections
2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size and Modeling
2.4. General Approach – Market Sizing
2.5. Market Sizing – Thailand auto finance market
2.6. Variables (Dependent and Independent)
2.7. Multi Factor Based Sensitivity Model
2.8. Regression Matrix
2.9. Limitations
2.10. Final Conclusion
3. Thailand Auto Finance Market Evolution, 1900-2018
3.1. On the Basis of Entry of Major Players, 1900-2018
3.2. Change in Sector Related Policies & their Effect on Thailand Auto Finance Market, 2010-2020
4. Thailand Auto Finance Market Overview & Genesis
4.1. Market Overview
5. Thailand Auto Finance Market Ecosystem, 2018
6. Thailand Auto Finance Market Value Chain Analysis
6.1. Online Aggregators
6.1.1. Money Guru
6.1.2. Go Bear
6.2. Vendor Selection Process in Thailand Auto Finance Market
6.3. Major Pain Points of Various Entities In Thailand Auto Finance Market
7. Thailand Auto Finance Market Size (By Credit Disbursed, Auto Loan Outstanding & Number Of Automobiles Financed), 2013-2018
7.1. Loan Proportions, 2013-2018
7.2. Recent Developments, Company Positioning, Digitalisation & Major Business Stratergies, 2018
7.3. Ways To Finance A Car In Thailand Auto Finance Market (Bank Finance Or Multi Financing Companies, Personal 7.4. Finance, Lease Financing), 2018
8. Thailand Auto Finance Market Segmentation, 2013-2018
8.1. Market Segmentation By Type of Vehicle (Passenger and Commercial), 2013-2018
On the Basis of Credit Disbursed And Auto Loan Oustanding, 2013-2018
8.2. Market Segmentation By New And Used Vehicles, 2013-2018
On the Basis of Number of Vehicles Financed (In Units), 2012-2018
On The Basis of Auto Loan Outstanding (THB billion), 2016-2018
8.3. Market Segmentation By Tenure Of Loan (1 Year, 2 Years, 3Years, 4 years, 5 Years or More), 2018
8.4. Market Segmentation By Type of Institutions (Banks and Subsidiaries, Captive Finance and Non-Banks), 2016-2018
9. Major Trends and Development in Thailand Auto Finance Market
9.1. Constant Prime Lending Rate
9.2. Growing Consumer Confidence Index
9.3. Increase in Car Sales in 2018
9.4. Growth of Used Car Market
10. Government Regulations in Thailand Auto Finance Market
10.1. Regulatory framework for Multi Finance Companies
10.2. Acts Governing Thailand Financial Institutions
Bank Of Thailand Act, BOT Act
Financial Institutions Business Act, FIBA
Royal Decree Regulating on Electronic Payment Services
Payment System Act
10.3. Thai Royal Gazette
10.4. License Requirements to Operate as a Financial Institution in Thailand
10.5. Lending Limitations
Interest rate and charges
10.6. Membership Requirement in other Organizations
Credit bureau
Credit Associataion
10.7. General Requirement and Documentation for New Car Financing
Identification documents
10.8. General Requirement and Documentation for Used Car Financing
11. Snapshot on Thailand Automotive Sales And Manufacturing Market, 2013-2023
11.1. Pictorial Analysis, 2015-2018
12. Thailand Auto Finance Market Competitive Scenario
12.1. Market Share of Major Entities in Thailand Auto Finance Market, 2016-2017
12.2. Strengths of Major Institutions in Thailand Auto Finance Market, 2018
13. Company Profiles for Major Banks in Thailand
13.1. Thanachart Bank Public Company Limited (TBANK)
Company Financial Analysis, 2012-2017
13.2. Bank Of Ayudhya (Krungsri)
Company Financial Analysis, 2012-2017
Ayudhya Capital Auto Lease Public Company Limited (Krungsri Auto)
Company Financials, 2012-2017
13.3. Siam Commercial Bank (SCB)
Company Financials, 2012-2017
13.4. Thai Investment And Securities Company limited (TISCO)
Company Financial Analysis, 2012-2017
13.5. Kasikorn Bank Public Company Limited (KBANK)
Company Financials
14. Future Outlook and Projections for Thailand Auto Finance Market, 2019E-2023E
14.1. Market Size By Credit Disbursed And Auto Loan Outstanding, 2019E-2023E
14.2. Future Market Segmentation, 2019E-2023E
By Type Of vehicles (Passenger and commercial vehicles), 2018-2023E
By New And Used Cars, 2023E
By Type Of Institutions, 2018-2023E
15. Analyst Recommendation
Disclaimer
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