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 over the forecasted period 2021-2026F.
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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
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
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 Bank
Development Bank of Philippines
Union Bank
Sterling Bank of Philippines
Penbank and more
For more insights on the market intelligence, refer to the link below:-
Philippines Auto Finance Market
Related Reports By Ken Research:-
KSA Auto Finance Market Outlook to 2026F