Motor show a big boost for finance firms
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Auto finance companies are delighted with their performance at the 33rd Bangkok International Motor Show, with new loans at the event exceeding targets thanks to a recovery in purchasing power and the launch of new vehicle models.
Ayudhya Capital Auto Lease, better known as Krungsri Auto, saw new loans exceed its target of Bt300 million at the show.
Managing director Pairote Cheunkrut yesterday said most customers had wanted to buy vehicles since the end of last year, but the severe floods had until now discouraged spending.
The launch of a number of new models at the show, especially eco-cars and pickups, also persuaded more people to commit to purchases.
Krungsri Auto’s loan-approval programme, which asked customers to swipe their identification cards at the company’s booth for a 15-minute approval turnaround, also boosted new lending.
He said new lending at the event was a record for the company, representing 25-30 per cent of overall new loans expected to be approved in the current second quarter. Performance this quarter is now expected to exceed first-quarter new lending of Bt30 billion.
The company is driving new lending towards the full-year target of Bt127 billion.
Financing for new vehicles accounts for 50 per cent of its overall new loans, with another 45 per cent from loans for used autos and 5 per cent from motorcycle financing.
Krungsri Auto’s outstanding loans are expected to reach Bt200 billion by year-end, up 28 per cent from last year, Pairote said.
Anuchart Deeprasert, senior vice president at Thanachart Bank, said the company’s second-quarter auto loans would likely exceed those in the previous quarter, given the business done at the Motor Show. New lending exceeded Bt30 billion in the first three months of the year.
Akaranant Thitasirivit, managing director of Kasikorn Leasing, said half of its new loans at the show were for eco-cars, the company’s main target.
New auto loans at the event came in on target at Bt4 billion, thanks to new models and rising consumer confidence.
Narong Srichukrin, executive vice president of Siam Commercial Bank, said the Motor Show had sparked good demand due to the range of new models launched at the event. The bank’s new auto loans in the current quarter will, therefore, be higher than the total for the first three months of the year.
Siam Commercial Bank’s new auto loans came in at Bt25 billion in the first quarter, surpassing its estimate of Bt18 billion because of pent-up demand from late last year and lower interest rates, he said.
Chalit Silpsrikul, executive vice president of Tisco Bank, said pent-up demand was a key factor behind auto-loan growth in the year to date.
The bank’s new auto lending in the first quarter grew by 5 per cent, and the second quarter is estimated to expand by a similar amount. Auto-loan growth of 12-15 per cent is projected for the full year.
Tisco Bank has not yet calculated the loan business done at the Motor Show, but new lending generated at the event should contribute at least 10 per cent of overall auto lending this quarter, Chalit said.
