Thailand Auto Finance Market Outlook to 2026: Ken Research

Government investment and growth in online retail and logistics created a greater demand for commercial vehicles in the country, where the Auto finance market of Thailand has seen some major growth in the share of commercial vehicles post covid-19.

Decline in Growth Rate: Since people purchasing power decreased due to the epidemic, there has been a dip in the market for new and used cars, which has negatively impacted Thailand's auto finance industry. Due to the COVID-19 pandemic, vehicle loans have been disrupted for a number of reasons, including a decrease in the number of chips required for mass-produced automobiles. The fact that a new car was a depreciating asset made the purchase seem less significant. Moreover, Thailand's major cities provide affordable, quick public transportation.

Post-Covid Recovery, Road Expansion, and Development: Sales in the automotive sector were impacted by COVID-19 and the work-from-home culture. However, as offices reopen and business activity picks up in the nation in 2022, sales start to increase. Private vehicle demand in the nation increased as a result of road construction and infrastructure expansion. Increased automobile sales in the nation are also a result of the people's improved economic situation. Good economic conditions and rising consumer spending power made new automobiles more affordable for more people, which fueled the country's auto market's expansion.

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Automotive Policy in Thailand: Thailand has supported EVs by lowering import tariffs on EV vehicles ranging from 0 to 40% until 2023, depending on the size of the engine. The Thai government adopted a set of incentives, including tax breaks and subsidies, to encourage the use and production of electric vehicles (EVs) between 2022 and 2023.

Confusing and time-consuming terms and conditions: For a salesman and customer to successfully complete an average vehicle loan application in Thailand, a significant amount of paperwork is frequently needed. Consumers frequently perceive the conditions of their auto finance to be complicated and time-consuming since they have trouble understanding loan elements during loan discussions. The greatest barriers to poverty and inconsistent income are found in rural Thailand. The monthly budget may be stretched by making monthly auto finance payments.

Analysts at Ken Research in their latest publication "Thailand Auto Finance Market Outlook to 2026F- Driven by Road Infrastructure Development and Economic Growth in the Country" observed that the Auto Finance market is an emergent market in Vietnam at a rebounding stage from the economic crisis after the pandemic. The immense infrastructural development projects in the country, partnerships, and mergers with other banks along with the adoption of digitalization are expected to contribute to the market growth over the forecast period. The market is expected to grow at a 7.4% CAGR during 2021-2026F owing to the increasing purchasing power of consumers, adoption of EVs, and new government policies.

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Key Segments Covered

Thailand Auto Finance:

By Type of Vehicle financed
New cars
Used cars
Motorcycles
By Distribution channels:
Banks & Subsidiaries
NBFC's
Captives
By Type of Financing:
Passenger Vehicles
Commercial Vehicles.
By purpose type:
Loans
Lease

By Tenure of the loans:

1 year
2 years
3 years
4 years
5 years and above.

Key Target Audience

Banks and their Subsidiaries
NBFCs
Captive Finance Companies
Government and Institutions
Automobile Companies
Car Dealers
Government and Institutions
Existing Car Finance Companies
OEM Dealerships
New Market Entrants
Investors
Automobile Associations

Time Period Captured in the Report:

Historical Year: 2016-2021
Base Year: 2021
Forecast Period: 2021- 2026F

Companies Covered:

Banks and Subsidiaries
TMBThanachart Bank
Ayudhya Bank
Siam Commercial Bank
TISCO Bank
Kiatnakin Bank
Kasikorn Bank
Others (Including ICBC Bank, Citi Bank, Bangkok Bank, and Krungthuri Bank)

Captives

Toyota Leasing Thailand
Honda leasing
Mercedes-Benz leasing
BMW Financial Services
Others

NBFC's

Muangthai Capital
Asia Sermkij Leasing Nakhon Luang Capital Limited
Thitikorn
Summit Capital
Group Lease
Aeon Thana Sinsap
G Capital Public Limited
Others (Thai Ace Capital, SGF Capital, JMT Network, Phatra Leasing Company, Mitsib Leasing)

Key Topics Covered in the Report

Thailand Automotive Market Overview
Thailand Automotive Finance Market Overview
Ecosystem of Thailand Auto Finance Market
Business Cycle and Timeline of Thailand Auto Finance Market
Thailand Auto Finance Value Chain Analysis
Market Sizing Analysis of Thailand Auto Finance Market, 2016-2021
Thailand Auto Finance Market Segmentation (By Type of Vehicle Financed, By Distribution Channel, By Tenure Loan, By Purpose Type, By Type of Motor Vehicle), 2021
SWOT Analysis of Thailand Auto Finance Industry
Trends and Developments in Thailand Auto Finance Industry
Decision Making Parameters for Selecting Car Loan Vendor
Issues and Challenges in Thailand Auto Finance Industry
Growth Drivers of Thailand Auto Finance Market
Government Regulators and Initiatives in Thailand Auto finance Industry
Competition Framework for Thailand Auto Finance
COVID-19 Impact on Thailand Auto Finance Market
Future Outlook and Projections of Auto Finance Market in Thailand, 2021-2026F
Market Opportunities and Analyst Recommendations

For More Information on the research report, refer to below link: -

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/thailand-auto-finance-market-outlook-to-2026/596198-93.html

Related Reports by Ken Research: -

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/singapore-auto-finance-market-outlook-2025/508467-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/egypt-car-finance-market/124560-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/philippines-auto-finance-market-outlook/308534-93.html

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