Ken Research Pvt. Ltd.

Philippines Auto Loan Book Growth is Driven by the Growing Filipino Economy, Motorization Rate and High Penetration Rate of New and Used Vehicles: Ken Research

Press release   •   Jul 10, 2019 19:22 IST

“The banks and non-banking institutions are moving away from the capital region towards less penetrated areas by increasing their branches to tap the underserved market.”

Analysts at Ken Research in their latest publication Philippines Auto Finance Market Outlook to 2023 – By Banks and NBFCs including Captive Units (Auto Loan Portfolio and Motor Cycle Loan Portfolio), By New and Used Motor Vehicles, By Motor Vehicle Financed (Passenger and Commercial Vehicles), By Loan Time Period believe that the Philippines Auto Finance demand will grow in the near future on the back of growing digitalization and market innovation, customized auto loan product, focusing towards marketing and promotion, providing commercial and used vehicle financing and other factors. The market is further anticipated to register a positive CAGR of ~17% in terms of AUM during the forecasted period 2018-2023.

Growing Economy: The Philippines is one of the fastest growing economies in the world with major focus shifting from agriculture to services and manufacturing. Amid this transition, major focus is being given to automobile sector to increase its contribution towards GDP. As auto manufacturing sector advances costs are coming down making automobiles more accessible for Philippines locals. The country has a motorization rate of just 38 vehicles per 1,000 people which is way less than other ASEAN countries. This number is growing with more Filipinos entering the middle class in a flourishing economy and aiming to own a personal vehicle.

The penetration rates for both new and used cars has increased for the Philippines auto sector thus, leading to high purchase of automobiles owing to the increased household disposable income of the citizens. Also, the Philippines Gross National Income per capita has increased considerably in the past one decade, allowing more households to own an automobile of their own. Increasing purchasing power in terms of household income has allowed the citizens to meet the minimum household income criteria of auto loan institutions which have led to massive increase in auto loan book and new loan acquisition rate. The advent of online aggregators such as www.autodeal.com.ph has made potential buyers more aware of the prevailing prices in the market for sales of automobiles. This has given them higher bargaining power to customers to make better informed decisions while negotiating prices with car dealers in both new and second hand sales of cars and others.

Strong Financial performance of Major Players and non-banking institutions: Major financing companies reported strong financial performance with quality auto-loan growth and healthy liquidity positions. Financing companies adopted risk-averse strategy in vehicle financing by prioritizing loans for the best-selling cars while penetrating a second-hand vehicle market for an optimal risk-return trade-off. Some of the leading banking institutions include Metro Bank, BDO, Ps Bank, East West Bank, the Philippine National Bank (PNB Saving Bank), Bank of the Philippine Islands, RCBC, May Bank Philippines Incorporated and others whereas some of the leading NBFCs in the Philippines include Toyota Financial Services Philippines Corporation, MAFS, Unistar Credit and Finance Corporation, Radio Wealth finance Company and others.

Key Segments Covered:-

By Type of Motor Vehicle Loans Provided By Banks and NBFCs

Auto Loan Portfolio

Motor Cycle Loan Portfolio

By Type of Motor Vehicle

New Vehicle

Pre-Owned Vehicles

By Type of Motor Vehicle Financed

Passenger Vehicles

Passenger Cars

Utility Vehicles

Sports Utility Vehicles

Two Wheelers

Commercial Vehicles

Trucks

Buses

Trailers

By Time Period of Loan between New and Pre-Owned Motor Vehicles and

One Year

Two Year

Three Year

Four Year

Five Years and More

By Vehicles Registered Under Various Regions

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:-

Historical Period: 2013-2018

Forecast Period: 2018-2023

Key Companies Covered:-

Banking Institutions

Metro Bank

BDO Bank

PS Bank

East West Bank

Philippine National Bank

Bank of the Philippine Islands

Maybank Philippines Incorporated

Others

Non-Banks and Dealership Financing

Toyota Financial Services Philippines Corporation (TFSPH)

MAFS

Unistar Credit and Finance Corporation

Radio Wealth finance Company

Others

Keywords:-

Philippines Auto Finance Market

Auto Finance Market In Philippines

Philippines Auto Finance Market Revenue

Philippines Auto Finance Market Major Players

AUM Auto Loan Philippines

Auto Loan Book Market Philippines

Auto Loan Product Philippines

Bus Finance Market Philippines

Used Car Finance Market Philippines

Car Finance Industry Philippines

Motor Loan Market Philippines

Motor Loan Book Philippines

Motor Cycle Loan Market Philippines

Auto Lease Market Philippines

Philippines Auto Finance Product

For more information on the research report, refer to below link:-

Philippines Auto Finance Market

Related Reports:-

Vietnam Auto Finance Market Outlook to 2023 - by Loan Tenure, by Type of Institution (Commercial Banks and Non- Banking Financial Institutions) and by Type of Vehicle (Passenger and Commercial)

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

Indonesia Car Finance Market By Type (New And Used Passenger And Commercial Cars), By Tenure Of Loan, By Banks, Captive And Non Captive Institutions - Outlook To 2021

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249

Ken Research is a Global aggregator and publisher of Market intelligence, equity and economy reports. Ken Research provides business intelligence and operational advisory in 300+ verticals underscoring disruptive technologies, emerging business models with precedent analysis and success case studies. Serving 70% of fortune 500 companies globally, some of top consulting companies and Market leaders seek Ken Research intelligence to identify new revenue streams, customer/ vendor paradigm and pain points and due diligence on competition. With a network panel list of 5000+ Industry Veterans and experienced 100+ analysts, consultants and research publishers across the globe, Ken Research aid clients in identifying the demand–supply gap, niche segments and challenges in the ecosystem.