Philippines Auto Finance market size is expected to reach USD ~18 Bn by 2026 owning to rising demand of automotives, e-vehicles sales and growing fintech startups: Ken Research
GURUGRAM, India, Feb. 7, 2023 /PRNewswire/ -- Philippines Auto Finance Market is in the growing stage, being driven by rising demand of automotives, positive outlook for e-vehicles, and potential for fintech growth. There are several players in the Philippines Auto Finance market some of which Metro Bank, Citi Bank, HSBC, RCBC, Global Domain, Asialink, Toyota Financial Service, JP Morgan, Maybank etc.
- Philippines Auto Finance Market is in the growing phase and is driven by introduction of captives and online aggregators as well as growing prevalence of financing companies and auto dealers in the industry.
- Better Technological Infrastructure and the rising usage of AI and ML for better Auto lending experience with Innovative Business Models such as Subscription Lending & shared ownership will the way for the growth in Philippines auto financing industry.
- Philippines closed 2021 as the second fastest growing market for motor vehicles in Southeast Asia, with the number of units produced and sold registering double-digit increases from the previous year.
Growing Digital Advancements: The Industry is increasingly moving towards newer technology such as Artificial Intelligence and Machine Learning to improve its efficiency. The Insurance Commission continues to push for digitalization and further innovation by promoting better customer service. For instance, Fintech PH aims to position the Philippines as a hub for technological innovation in financial services through the partnership with the technology associations in China, Denmark, Israel, Japan, Malaysia, Singapore, and Thailand. In the past, 5 – 10 years, Philippines is witnessing a new wave of digital enhancements with several new fin-tech platforms for aggregation, peer – to – peer lending and more coming in the market. Some of the most well-known of these start- ups are- Moneymax, Seekcop, Justpay.to, pesopay etc.
Constant growth in automobile industry: Despite supply constraints, the auto industry seems to be growing at a high rate. The rise in private car service financing is driving the Philippines automotive financing market. For instance, it is the fourth largest automotive market in South East Asia increased by double digit in May 2022.
Increasing Private Hire Car Service, a large number of people in Philippines are now preferring private Hire Cars leading to potential increase in their financing in future. Green Car Loans or Electric Vehicles is an emerging segment in Philippines leading way for green loans in the country.
Green Vehicle Policy: The Philippine electric vehicle (e-vehicle) industry aims to have a nation where the use of electric vehicles is highly promoted, encouraged, and supported by its government and society in order to develop a transportation landscape that is one with the environment, ecologically and economically. The EV Act seeks to develop the Philippine electric vehicle (EV) industry and create a Comprehensive Roadmap for the EV Industry (CREVI). The law covers the manufacture, assembly, construction, import, trade and regulation of EVs, related equipment and their charging stations, and the tax incentives accompanying these projects.
Financial Support Provision: Auto Finance Companies and Dealerships are also expected to further increase their financing and contracting options making them more flexible to support retail Sales. It is expected that NBFC and Captive companies will start picking up more pace than Commercial Banks in Philippines Auto finance Industry
Analysts at Ken Research in their latest publication "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 observed that Auto Finance Market is an emergent market in Philippines at a growing stage even during the pandemic as well. The rising demand for automobiles, Positive Outlook for E-Vehicles, and growing digital advancement like Artificial Intelligence and Machine Learning, are expected to contribute to the market growth over the forecast period. The Philippines Auto Finance Market is expected to see high growth rate with a CAGR of 6.8% over the forecasted period 2021-2026F.
Key Segments Covered
Philippines Auto Finance Market
By Category of Lenders (By Credit dispersed), 2021 & 2026F
- Universal and Commercial Banks
- Thrift Banks
- NBFCs
- Captives
By Type Of Vehicles (By Credit dispersed), 2021 & 2026F
- Two and Three Wheelers
- Four Wheelers
- Buses and Trucks
By Type of Ownership (By Credit dispersed), 2021 & 2026F
- Used Cars
- New Cars
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By Category of Vehicles (By Credit dispersed), 2021 & 2026F
- Passenger Vehicles
- Commercial Vehicles
By Loan Tenure (By Credit dispersed), 2021 & 2026F
- 12 - 24 Months
- 25 – 48 Months
By Geographical Location (By Credit dispersed), 2021 & 2026F
- Region I
- Region II
- Region III
- Region IV - A
- Region IV - B
- Region V
- Region VI
- Region VII
- Region VIII
- Region IX
- Region X
- Region XI
- Region XII
- NCR
- C.A.R
- CARAGA
Key Target Audience
- Banks and its Subsidiaries
- NBFCs
- Captive Finance Companies
- Government and Institutions
- Automobile Companies
- Car Dealers
- Government and Institutions
- Existing Auto Finance Companies
- OEM Dealerships
- New Market Entrants
- Investors
- Auto mobile Associations
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Time Period Captured in the Report:
- Historical Period: 2016-2020
- Base Year: 2021
- Forecast Period: 2022– 2026F
Companies Covered:-
- Asialink Finance Corporation
- Yulon Finance Philippines Corporation
- Security Bank
- MetroBank
- Welcome Bank
- Toyota Financial Services Philippines Corporation (TFSPH)
- Bank of Philippines Island
- BDO Unibank
- Malayan Insurance
- Philippine Depository and Trust Corporation
- LBP leasing and Financing Corporation
- Robinsons Bank
- The Philippine Bank of Communications (PBCOM)
- Land Bank of Philippines
- Asia United BankDevelopment Bank of Philippines
- Union Bank
- Sterling Bank of Philippines
- Penbank and more
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 Automotive Future Outlook
- 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
- Government Policies affecting Philippines Auto Finance Industry
- Competitive scenario in Philippines Auto finance Market
- Digital disruptions in Auto Finance
- Analyst Recommendation
For more insights on the market intelligence, refer to below link:-
Philippines Auto Finance Market
Related Reports By Ken Research:-
KSA Auto Finance Market is expected to grow with a positive CAGR during the future period 2021-2026F. The Vision 2030 project in KSA has massive plans for the economy targeting to improve employment figures that might aid the auto finance market as well. A lot of new construction activities are taking place like the Neom and Red Sea project which will increase demand for commercial vehicles and majorly HCVs. It is expected that the commercial vehicles demand/ production is going to rise till 2025, thereby positively affecting the market.
The Singapore Auto Finance industry is expected to increase at a CAGR of ~11% basis Auto credit disbursed and ~0.4% basis Auto Loan Outstanding during 2020 to 2025. The credit disbursed is expected to rise in Singapore at higher than average CAGR owing to higher number of cars financed in the future. The government of Singapore is working towards expansion of Green Car Sales in the country, which is expected to increase the demand of 'Green Car Loans' in the future years. New Business Models such as Shared Ownership Financing may also emerge in the country in the coming years. Lastly, Industry is expected to move towards a digital growth with the expansion of Artificial Intelligence, Machine Learning, Big Data and more to further simplify loan application process.
According to Ken Research estimates, the Thailand Auto Finance Market grew from approximately THB 900 Bn in 2016 to approximately THB 1200 Bn in 2021, and is forecasted to grow further to ~ THB 1800 Bn by 2026F owing to the increasing purchasing power of the consumers and adoption of EVs. The automotive industry in Thailand is the largest in Southeast Asia and the 10th largest in the world. Banks have been the dominant players as they have huge pre-built database that they leverage for their own advantage. Many Western brands are present in the country but Japanese brands have long had a dominant position in Thailand due to affordable prices.
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