How Philippines Auto Finance Market Is Positioned?
The auto finance market has played an imperative role in the overall GDP (Constant Prices) contribution in the Philippine economy with a value contribution of more than 25% in terms of auto loan outstanding by the end of 2019 (Provisional). The Auto Finance Market in Philippines is fairly new and has not been able to penetrate the country. There is a lack of knowledge and awareness in the country which leads to the problem of people opting for cash purchases, in place of finance payments.
Major operations are conducted by two types of entities namely, Banks & Subsidiaries and Non Bank Financial Institutes. The only captive finance working in the country is Toyota Financial Services Philippines and other than that there is a lack of Captive finance institutions. The Issuance of digitally Advanced Products, being offered by various Fintech Institutions, also acts as a Catalyst to the Growth of Industry. Philippines auto finance market size in terms of auto loan outstanding increased from ~ in 2014 to ~billion in 2019P, registering a CAGR of ~ during the same period. The growth factors include lowering lending rates, growth in new & used car sales, expanding household population and higher demand in the urban regions along with progressive technological advancements being mandated by the government and the adoption of digitalization by all major financial institutions in the country.
Two-wheelers market witnessed growth with the rise in motorcycle fueled by the huge demand by small industry workers and rural business. Constant prime lending rates, growing car sales and evolving used car market have been the major push factors.
Moreover, convenience in lending is being improved as online lending ecosystems contribute to the rising customized products catered to the borrower’s need.
Philippines Auto Finance Market Segmentation
By Type of Vehicles Financed: Market segmentation is done on the basis of sales of type of Vehicle financed. It was observed that out of total vehicle financed, new Automobiles capture almost ~ of the market in 2019P, while used Automobile capture ~ of the overall financed vehicle, and motorcycle amounted to ~ in terms of units.
By Banks and Non Banks: Philippines Auto finance market is largely governed by Banks and Banking segment of the market amounts to ~ of the overall market. Non banking sector amounts to ~ of the market in terms of Auto loan outstanding.
By Banks on the basis of Auto Loans and Motorcycle Loans: In Philippines, it is witnessed that the banks majorly focus upon providing loans to the Automobile segment rather than motorcycle segment. Due to this, auto loan segment of the bank amounted to ~ of the market and Motorcycle loan amounted to ~ of the overall market.
By Non Banks on the basis of Auto Loans and Motorcycle Loans: Non Banks in Philippines majorly focus on providing loans for Used Automobiles and for motorcycle, as they have lower average price. For Non Banks, we see that Auto loans amounts to ~ and motorcycle amounts to ~ of the market.
By Type of Banking Institutions: There are majorly two types of Banking Institutions in Philippines; Commercial and Thrift banking systems. Commercial banks are big and govern ~ of the banking segment of the market and thrift banking system amounts to ~ of the banks share in the market.
By Sales Registration: In Philippines, we witness that NCR region, has the highest value of sales registration and approximately ~ of the total vehicles are registered in this area.
By Nature of Vehicle: The market has been divided in terms of Used and New Vehicle. It is witnessed that in Philippines, majority of the market is governed by new vehicle and it amounts to ~ of the overall market. On the other hand, used vehicle market amounts to ~ of the overall market.
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
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
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