Philippines Auto Finance Market Segmentation: Ken Research

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  

Related Reports:-

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

Qatar Auto Finance Market Outlook to 2023 –By Banks, Non Banking Financial Companies and Captives, By New and Used Vehicles Financed, By Type of Vehicle Financed (Motor Bikes, Cars and Light Commercial Vehicles) and By Loan Time Period

US Vehicle Finance Market Outlook to 2023 –By Banks and Non Bank Entities including Captives and Credit Unions and Finance Companies (Auto Loan Portfolio), By New and Used Vehicles, By Type of Vehicle Financed (Passenger Cars and Light Trucks), By Loan Time Period and By Risk Category

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Created on Feb 10th 2020 03:01. Viewed 310 times.

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