Thailand Auto Finance Market Outlook to 2026F Driven by Road Infrastructure Development and Economic Growth in the Country

Thailand Auto Finance Market Outlook to 2026F Driven by Road Infrastructure Development and Economic Growth in the Country

The report provides a comprehensive analysis of the potential of Auto Finance industry in Thailand. The report covers an overview and genesis of the industry, market size in terms of credit disbursed.

Its market segmentations include by types vehicles financed, by distribution channel, by tenure for new and used vehicles, by purpose type, by types of commercial and passenger vehicles; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

About the Market

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.

Key Trends by Market Segment:

By Type of Vehicle Financed: Due to the country's increased adoption of the internet and smartphones, the market for used automobiles has grown in recent years. As a result, many consumers now prefer to purchase and sell cars through online auto classifieds and social media platforms like Facebook Market Place.

By Commercial and Passenger Vehicle: Passenger vehicle consumption increased as the country’s tourism sector rebounded after the government eased its Covid-related travel protocols. The number of passenger vehicles are increasing in the country due to increasing residence population and economic growth.

Competitive Landscape

Future Outlook

The Thailand Finance Market will witness a significant growth during the period 2022-2026F, owing to Government investment and growth in online retail and logistics.

Growth rate of total cars financed is going to increase over the period as there are plans by automakers to stimulate demand with the release of new models.

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