
Auto loan providers are optimistic about recording growth in consumer loan products this year, bolstered by improvements in the automotive sector.
According to Sakchai Peechapat, chief executive of Tisco Financial Group, the group aims for 15% growth in auto loans this year, focusing on new car loans to align with rising new car sales.
Tisco anticipates Thailand's new car sales will reach 600,000 units this year, up from 570,000 units last year.
Tisco Bank, a subsidiary of the group, is prioritising expansion of its new car loan portfolio this year.
The group also expects used car loans to rise this year, while car title loans, motorcycle loans and other vehicle-related loan products are projected to maintain a positive growth trajectory.
"Given the recovery in the automotive industry, we set a double-digit growth target for auto loans this year, despite recording a 10% contraction last year," said Mr Sakchai.
Auto loans are a core business for Tisco Bank, comprising 43% of its total loan portfolio. At the end of 2024, the bank's total outstanding loans tallied 232 billion baht, with auto hire-purchase loans accounting for 100 billion.
Despite the contraction in auto loans last year, he said the bank's total outstanding loans decreased only 1.1% year-on-year thanks to the diversification of its loan portfolio.
For 2025, the bank set a total loan growth target of 0-5%.
Tisco reported net profit of 6.90 billion baht for 2024, a 5.5% year-on-year decline, driven by an increase in expected credit loss.
Aphinant Klewpatinond, chief executive of Kiatnakin Phatra Financial Group (KKP), said the group targets single-digit growth in auto loans this year, rebounding from last year's contraction.
In the first nine months of 2024, KKP's car loan portfolio shrank by 8.5%. The bank's auto hire-purchase loans totalled 171 billion baht, comprising 45.8% of its total loan portfolio for the period.
KKP is finalising its 2024 financial results for submission to the Stock Exchange of Thailand.
Mr Aphinant said the bank plans to focus on used car loans this year, which offer better yields amid a recovering used car market and reduced pricing competition.
KKP will continue to emphasise loans for internal combustion engine vehicles, he said.
TMBThanachart Bank (ttb), another key player in Thailand's auto loan market, also expects modest loan growth this year compared with a 10% contraction last year.
The positive outlook for 2025 is attributed to the ongoing recovery of the auto industry, according to ttb.