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“While oil price in 2020 is expected to linger at a relatively high level, currently in Philippines, there are 28 firms engaged in the manufacturing of various electric vehicles. Complementing these companies are 11 parts and component manufacturers and seven importers. The industry currently provides employment to 14,840 individuals. As the government continues to support the use of electric vehicles, the industry is expected to grow in the coming years”.
Market Penetration opportunity for Captive Finance Institutions: The Auto Finance Market of Philippines only consists of one major player in the market (TFSPH). This leaves space for major OEM brands to introduce in house financing services to enjoy the complimentary revenue stream which further helps in creating better demand in the market for Automotive sales and better customer acquisition probability.
Simplification of Lending Process: With indirect lending gaining precedence over direct lending, the loan process doesn’t involve communication between the credit institution and the consumer for discussing loan terms and payments. Many Agents are acting as mediators to get the loans approved and help the consumer acquire quick loans. Furthermore, with flexible payment options being introduced, the spotlight has shifted from affordability to convenience. Lenders have been also introducing customized products in order to cater to the needs of different consumer profiles and online lending models have simplified and improved the ease with which borrowers can compare and avail financing for their vehicle.
Investment by Japanese and Chinese Automakers will act as a catalyst to Revenue Growth: Several Japanese automakers have conveyed plans for further investment within Philippines, which should help the government implement its roadmap to build a globally competitive automotive industry. The investment will be used to expand the company’s business in Philippines during the period of 2019-2023. This will further boost up the sales of various passenger car companies in Philippines thereby, creating a positive impact for Philippines auto finance market.
Analysts at Ken Research in their latest publication “Philippines Auto Finance Market Outlook to 2024- Growing Prominence of Captive Finance and Surge in Used Car Sales Supporting Disbursement for Auto Loans” believe that the market demand is likely to follow a growth trend in the near future due to a forthcoming increase in used cars sales and a shift towards newer models of mobility such as car sharing and leasing, which will in turn help the economy grow as well. The market is anticipated to register a positive CAGR of 9.0% in terms of credit disbursed and 8.1% in terms of total loan outstanding during the forecasted period 2019P-2024F.
Key Segments Covered:
By Type of Vehicle Financed
New Vehicles
Used Vehicles
Motorcycles
By Banks and Non Banks
Banks (Auto Loans and Motorcycle Loans)
Non Banks (Auto Loans and Motorcycle Loans)
By Type of Banking Institutions
Commercial and Universal Banks
Thrift Banks
By Nature of Vehicles New Vehicles (Banks and Non Banks)
Used Vehicles (Banks and Non Banks)
By Type of Vehicle Sold
Passenger
Commercial
Motorcycles
By Tenure of Loans
New Vehicle (1 year, 2 Years, 3 Years, 4 years, 5 Years or More)
Used Vehicle (1 year, 2 Years, 3 Years or More)
By Registration of Vehicles
Key Target Audience
Existing Auto Finance Companies
Banks
OEM Dealerships
Captive Finance Companies
Credit Unions
Private Finance Companies
New Market Entrants
Government Organizations
Investors
Auto mobile Associations
Auto mobile OEMs
Time Period Captured in the Report:
Historical Period: 2014-2019P
Forecast Period: 2019P-2024F
Key Companies Covered:
Banks
MetroBank
BDO Bank
PS Bank
Eastwest Bank
The Philippine National Bank
Bank of the Philippine Islands
The Rizal Commercial Banking Corporation
Maybank Philippines
China Bank
United Coconut Planters Bank
Security Bank Corporation
Union Bank
Robinsons Bank
The Philippine Bank of Communications (PBCOM)
Land Bank of Philippines
Asia United Banking Corporation
Bank of Commerce
Development Bank of Philippines
Union Bank
UCPB Bank
Sterling Bank of Philippines
NBFCs
Radiowealth finance company (RFC)
Unistar Credit and Finance Corporation
Asia Link Finance Corporation Leauge
One Finance and leasing Corporation
DBP Leasing Corporation
First United Finance and Leasing Corporation
BPI Capital Corporation
Cebu International Finance Corporation
Orix Metro Leasing and Finance Corporation
Philippine Depository and Trust Corporation
LBP leasing and Financing Corporation
RCBC Leasing and Finance Corporation
Captives
Toyota Financial Services Philippines Limited
Key Topics Covered in the Report
Philippines Auto Finance Market Overview and Genesis
Philippines Auto Finance Market Ecosystem, 2019P
Value Chain Analysis of Philippines Auto Finance Market, 2019P
Philippines Finance Market Value Chain Analysis
Philippines Auto Finance Market Size, 2013-2019P
Philippines Auto Finance Market Segmentation, 20113-2019P
Major Trends and Development in Philippines Auto Finance Market
Regulatory Framework in the Philippines Auto Finance Market
Snapshot On Philippines Automotive Sales And Manufacturing Market, 2014-2019P
Ways to Finance Automotives in Philippines(Bank Finance or Multi Financing Companies, Personal Finance, Lease Financing)
Vendor Selection Process for Auto Finance Company in Philippines
Competitive Landscape containing Company & Product Profiles in the Philippines Auto Finance Market
Financial Penetration of various OEM Brands
Philippines Finance Market Future Outlook and Projections, 2019P-2024
Analyst Recommendations for the Philippines Auto Finance Market
For More Information, refer to below link:-
Philippines Auto Finance Market Research Report
Related Reports:-
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249