Electric vehicle sales provide a jolt for online lending, Krungsri Auto says
Surging sales of electric vehicles (EVs) are boosting digital auto lending, according to Krungsri Auto, the automotive finance unit of Bank of Ayudhya.
Rising EV sales in Thailand, particularly in the third quarter, contributed to rising demand for auto loans, and this led to significant growth of the digital lending service on the app “GO by Krungsri Auto”.
Congsin Congcar, head of Krungsri Auto Group, told a press conference on Friday that new digital loans for the first 10 months of this year rose 83% over the same period last year to 9.9 billion baht.
Congsin said that EV loans accounted for 34% of the total.
"With this growth rate, we can expect to see lending growing beyond our targets," he added.
Krungsri Auto’s digital lending target for this year is 10.6 billion baht, a year-on-year increase of 53%. The amount is equivalent to 6% of its target for total new lending for the full year, which is 173 billion baht.
According to a recent report from the Department of Land Transportation, sales of EVs surged 289% in October from the same month last year.
The expansion of digital auto lending also coincides with a shift in Thai consumer behaviour. According to Krungsri Auto research, 68% of Thai internet users now buy products and services online every week.
Congsin said this was one reason Krungsri is adding more services to its app.
"We want to be more than just a digital loan application," he said.
“With more complete services, we will continue to strengthen our ecosystem through the expansion of strategic partnerships with manufacturer brands, dealers, providers of EV infrastructures, and technology providers to create new solutions that meet the everyday needs of automobile users across all groups,” Congsin added.
Congsin said lending targets were either on track or exceeding targets. Full-year figures will be released at the end of this month, he said.
Consumers can apply for vehicle loans through GO by Krungsri Auto with just their identification cards and NDID verification.
After receiving notification of approved credit, they can sign a contract and purchase a vehicle without the need to submit additional documents, Congsin said.
He said the process can be completed in 30 minutes on the app.
Krungsri Auto was Thailand's first auto-loan provider to offer service for all products through an app. Currently, 96% of the GO by Krungsri Auto app users live in Bangkok and other metropolitan areas, with the majority of them working full-time.
