Krungsri Auto predicts minimal growth in new auto loans despite EV boom

Krungsri Auto, Thailand’s leading auto loan provider, predicts a mere 0.4% increase in its new auto loans for 2024, despite the anticipated boom in electric vehicle (EV) sales at the upcoming 45th Bangkok International Motor Show. This forecast was shared by Congsin Congcar, the head of Krungsri Auto Group, after the company issued over 223 billion baht in new auto loans last year.

The Federation of Thai Industries has indicated that stringent auto loan criteria are likely to persist due to concerns about high household debt levels, leading to a high loan rejection rate. However, Krungsri Auto secured a 50% market share in new EV loans last year, according to Congcar.

The Bangkok International Motor Show, scheduled to hit the road on March 27 at the Impact Exhibition Center, is expected to host a number of new EV manufacturers presenting their vehicles for the first time. Among them are Vinfast, a Vietnamese firm launching battery-powered sports utility vehicles and an electric pickup concept, and Changan, a Chinese EV maker presenting their new Lumin Mini EV model.

Jaturont Komolmis, Chief Operating Officer of Grand Prix International, the event’s organiser, anticipates a 12% rise in both visitors and exhibitors from the previous figure of over 1.6 million. Furthermore, the number of car brands is expected to increase from 40 to 49.

Prachin Eamlumnow, Chief Executive of Grand Prix International and chairman of the 45th Bangkok International Motor Show asserts the return of visitor and exhibitor numbers to pre-pandemic levels is a positive indication for the Thai industry. However, he remains cautious about predicting the number of car bookings for this year’s show, given the multiple contributing factors. For context, the 2023 event witnessed a total of 40,000 car bookings, reported Bangkok Post.

In related news, battery electric vehicle sales in Thailand surged by 603% in 2023, driven by state incentives and promising market growth, despite Apple’s withdrawal from EV manufacturing efforts.