Rising Auto Finance Aggregators, Flexible Models of Financing with Growing Digital Advancement and Government Initiatives had driven Philippines Auto Finance Market: Ken Research

Rising Innovation:  Innovative digital startups such as iChoose.ph are reshaping the challenging car shopping and financing process into a quick and easy experience for customers in Philippines. It is expected that these will create an auto finance ecosystem in which digital aggregators increasingly control the sales and financing process. Car dealerships are expected to increasingly bring the experience of car shopping online by range of ways such as providing digital showrooms as well as e-finance.

 

Rising Middle Class Population: The Philippines is one of the fastest growing economies and is witnessing a fast growing middle class which implies higher purchasing power and in turn growth in automobile sales. As a result of this, credit disbursement will increase as more people will become a part of the banking system. Also, banks and non-banks are targeting these segments in the most untapped areas, which will also result in steady increase in auto loan disbursements for these segments.

 

COVID Impacts: Before COVID-19, ~37% of Southeast Asian consumers preferred personal vehicles. But with the outbreak of the pandemic, this proportion has increased to higher Extent, with this positive environment for the personal vehicles, the Philippines auto finance industry is expected to grow.

 

Growing Digital Advancement: Dealers can ensure they’re reaching online-first car shoppers by investing in an all-encompassing digital marketing solution that leverages mobile, location, and social media. Also, by 2023, the BSP hopes to have digitalized 50% of payments and encouraged Majority of the population to open bank accounts.

Government Initiatives: The Philippine government has mandated all lenders to grant a 30-day extension for all loan payments, including credit card dues and pawnshop loans, as the country grapples with the effect of the COVID-19 pandemic

Under Bayanihan Law, all credit card issuers and pawnshops, will be mandated to offer the 30-day grace period without interest, penalties or additional charges. Although higher interest rate is charged on used vehicle financing, still Pre-owned car financing shall enhance owing to rising government initiatives.

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.

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

Philippines Auto Finance Market - infographic

  • 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

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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

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 information on the research report, refer to below link:

Leading Players in Philippines Auto Finance Market

Related Reports:

KSA Auto Finance Market Outlook to 2026F– Driven by Women Entering the Market, Growing Private Entities and Initiatives by the Government

Singapore Auto Finance Market Outlook to 2025 (Edition II) – Driven by exorbitant Car Prices, Growing Digital Penetration and evolving Vehicle Ownership Characteristics amidst Systemically Regulated Car Ownership Policies by the Government

Thailand Auto Finance Market Outlook to 2024: Growing Prominence of Captive Finance Companies and Loan Portfolio of Banks acting as a Catalyst for Market Growth

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