The auto hire purchase industry is
another area that has been affected by the COVID-19 pandemic. The outstanding
balance of auto loans in the commercial banking system at the end of 3Q20 had grown at a slower pace of 3.5 percent. The slowdown
resulted from a decrease in newly approved credit and a decline in
domestic
sales of new cars to 530,000 units,
as well as
more captive finance companies entering the market.
The economy is set to gradually recover through
stimulus packages to boost domestic spending and restore confidence towards
COVID-19 prevention and control measures in Thailand. As a result, demand for
new cars and granting of new auto loans over the remaining period of this year
will likely see improvement. KResearch projects
that, by the end of 2020, the outstanding balance for auto loans of Thai
commercial banks will grow by 3.7 percent YoY, amounting to
THB 1.194 trillion, slowed down from7.7 percent YoY growth in 2019.
Regarding 2021, if the economy grows as
expected and no severe outbreak of COVID-19 happens,
auto loans of Thai commercial banks will likely
witness an accelerated growth rate of approximately 3.7–4.5 percent. This projection,
however, is accompanied by mounting concerns regarding asset quality amid
debtors' income and purchasing power that have yet to return to their
pre-COVID-19 levels. For this reason, the auto hire
purchase industry may not experience
growth approaching pre-COVID-19 levels for the next two to three
years.
Scan QR Code
Annotation
This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.