According to the Bangkok Post, Krungsri Auto, a leading player in automotive finance under the Bank of Ayudhya, has set an ambitious target for 2023: to capture a one-third market share of Thailand's electric vehicle (EV) lending sector. Despite a projected 6% decline in motorcycle sales this year, the company is eyeing significant growth in the EV segment.
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Of the estimated 1.7 million motorcycle units to be sold, approximately 30,000 are expected to be electric motorcycles, marking a substantial 203% increase. Krungsri Auto aims to finance around 6,000 of these electric motorcycles, equivalent to one-third of the market share, or about 2,000 units. This aggressive objective is in line with the company's strategic vision to establish a strong presence in the rapidly evolving EV lending market.
To achieve this, Krungsri Auto is adopting a two-fold approach. Firstly, it will continue to provide comprehensive EV loan solutions across various segments, brands, and models, offering competitive interest rates, campaigns, and privileges to cater to diverse customer preferences. Secondly, the company plans to expand its mobility ecosystem through the GO Application, collaborating with key stakeholders in the EV industry to create valuable content, features, and an enriched lifestyle experience for EV users.
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Despite a projected 3% decrease in new car loans compared to the previous year, Krungsri Auto, already a leader in auto lending with a 37 billion baht loan portfolio, aims to generate 19.3 billion baht in new car loans this year. This move signifies their commitment to embrace digitalization within the auto finance sector. Additionally, Krungsri Auto intends to maintain fixed interest rates for auto loans, even if the Bank of Thailand decides to raise its policy rate to 2%.
Krungsri Auto has a strong track record of effectively managing non-performing loans, particularly in the EV segment, where buyers typically exhibit higher incomes and financial discipline. This strategic push into the EV lending market underscores the company's determination to seize opportunities in the evolving electric vehicle sector and broaden its influence in this dynamic market.
