Outstanding auto loans expected to rise 6% this year
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The Thai Hire Purchase Association expects total outstanding auto loans this year to grow by 6 per cent to Bt2.1 trillion, of which Bt1.6 trillion will be for new vehicles and around Bt450 billion for used cars and trucks, said chairman Anuchart Deeprasert.
Pickups and related vehicles will be the key drivers to the lending, growing by at least 5 per cent, against growth of 2-3 per cent in lending for passenger-car purchases.
Pickup-based vehicles, especially PPVs (pickup passenger vehicles), are in high demand as business operators want them for both commercial and family use.
Demand for eco-cars will be lower because buyers in this segment are low-to-medium income earners who don’t have much purchasing power during the subdued economy recovery, Anuchart said.
The association believes that car dealers and lenders will focus strongly on the pickup and related vehicle segments.
Last year, total outstanding auto loans amounted to Bt2 trillion, up from Bt1.8 trillion in 2015.
