• Outstanding auto hire-purchase loans at domestically registered commercial banks contracted by 8.2 percent YoY as of April 2026, despite a 15-percent YoY surge in domestic vehicle sales during the first four months of the year. Looking into the remainder of 2026, demand for new vehicles may face mounting constraints amid economic uncertainty, while EV sales are expected to continue rising, largely driven by financially stronger buyers. As a result, new lending may not expand in line with growth in the automotive market.
• Asset quality in the commercial banking system’s auto hire-purchase portfolio is expected to remain relatively stable in 2026, supported by prudent loan approvals in accordance with responsible lending guidelines, alongside debt restructuring and borrower assistance efforts. This is reflected in the four consecutive quarters of decline in both special mention loans (Stage 2: 31–90 days past due) and non-performing loans (NPLs).
• Nevertheless, asset quality remains a focal point for financial institutions amid an uneven economic recovery and persistent uncertainties stemming from both domestic and external factors. Given this, KResearch projects that outstanding auto hire-purchase loans in the commercial banking system will decline for a fourth consecutive year in 2026 to around THB 711 billion, down 7.2 percent from the previous year. However, this would represent an improvement from the 9.9-percent YoY contraction recorded in 2025.
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