Revving up: Rever Leasing to drive BYD EV financing in Thailand

Rever Leasing, a vehicle finance subsidiary of Rever Automotive Co, the exclusive distributor for BYD electric vehicles (EVs) in Thailand, is set to launch operations next month. The firm has set a high target to become the top electric vehicle loan provider in Thailand within the next few years.

Isara Wongrung, the CEO of Rever Leasing, expressed confidence in the firm’s ability to achieve this goal, owing to its unique position as the only EV-specific leasing company in the Thai market.

Isara also shared his projections for Thailand’s new car sales to remain steady at 780,000 units in 2024, mirroring the previous year’s figures. This projection aligns with the nation’s slow economic recovery and its anticipated GDP growth of 3% this year.

Isara attributed the dampened economic activities and the reduced consumer purchasing power to the delayed disbursement of the fiscal 2024 budget. This has led to a drop in new car sales in the first quarter.

However, Isara anticipates a rebound in car sales following the commencement of budget allocations.

In 2023, new car sales in Thailand fell to 780,000 units from 830,000 in 2022. EVs accounted for 10% or 78,000 units, with BYD capturing a dominant market share of 50%.

EV surge

Isara predicts a surge in EV sales to 100,000 units this year, with BYD maintaining its market leadership at 50% with 50,000 EV units.

Rever Leasing, fully owned by Rever Automotive, is poised to begin operations in May with an initial registered capital of 1 billion baht.

Isara outlined Rever Leasing’s aggressive growth plans, aiming for a 20% market share in the EV loan segment in its first year of operation, growing by 10 percentage points annually over the next two years, eventually reaching 40% in 2026.

The company targets its auto loan portfolio to reach 10 billion baht this year, then grow to 20 billion next year and 30 billion in 2026.

During the first year of offering loans to BYD buyers in 2023, the company’s three bank partners, Kasikornbank, Siam Commercial Bank, and Bank of Ayudhya, did not record any non-performing loans (NPLs).

Rever Leasing plans to target customers with higher incomes, including office workers, government officials, and entrepreneurs who earn a minimum salary of 30,000 baht per month. The firm also requires a minimum down payment of 20-25% of the total car value, higher than its competitors.

With a robust risk management framework, Rever Leasing aims to keep NPLs at no more than 1.5% of total outstanding loans this year, said Isara.

“A steady interest rate outlook will enhance the ability of car buyers to repay their debts, benefiting the overall auto industry.”

In response to elevated interest rates, the three bank partners raised the auto loan interest rate for BYD vehicles to 1.98% per year, based on the new car flat rate, rising from 1.88% last month.