Consumer Automotive Financial Services in Thailand investigates the market for
automotive financial services linked to sales of new and used passenger cars
in Thailand. In addition to analysing the market for finance and leasing
services, the study also covers creditor insurance, motor insurance and road
assistance, and demonstrates the extent to which a market exists for extended
warranties and GAP insurance. Using survey results for average take-up rates
for finance and leasing propositions at the point of sale, data for the size
and growth of the automotive finance and leasing market for consumers in
Thailand is provided in terms of gross advances and assets leased for 2007 to
2011 with splits between finance for new and used cars and between finance
organised through dealerships at the point of sale and directly with banks or
other lending institutions. Moreover, also by means of data for average
take-up rates, the markets for creditor insurance, motor insurance, road
assistance, extended warranties and GAP insurance are sized in terms of gross
written premiums and other revenues sold through the automotive trade (i.e.
Via dealers and manufacturers) in 2011. These are broken down between new and
used cars and between new contracts sold during 2011 and in-force business
sold in previous years but still being renewed in 2011. The report draws on
a survey of 70 leading car dealerships as well as an analysis of the approach
to consumer automotive financial services of over 20 automotive brands in
Thailand. The PartnerBASE™ database that accompanies the report details
each of the marketing initiatives for consumer automotive financial services
traced by Finaccord for both dealers and manufacturers. Together, the report
and database will provide you with the definitive guide to current and future
opportunities in consumer automotive financial services in Thailand.
Table of Contents
0.0 EXECUTIVE SUMMARY
1.0 INTRODUCTION
What is this report about?
The focus of the report is on financial services related to the sale of
passenger cars to individuals
Rationale
The provision of financial services is essential to support both car sales
and profitability
... with huge diversity in these services between countries and products...
... which have yet to be explored in detail
Methodology
Survey of dealers and manufacturers
Market data
Computation of market data is based on a complex set of assumptions and
variables...
...in order to provide market segmentations in unrivalled detail
Definitions
Finance and leasing products
Insurance, warranty and assistance products
Captive, internal and tied providers
Abbreviations
PartnerBASE™
Finaccord
2.0 MARKET ANALYSIS
Introduction
Passenger vehicle data
New car sales have grown much faster than the overall car parc...
...while used cars are still mostly sold outside the dealer channel
Toyota and Honda jointly account for more than 60% of the market in new
car registrations
Consumer automotive finance and leasing market
Market size and growth
Slightly more passenger cars were paid for in cash rather than financed in
2011
The total value of car finance and leasing has more than doubled since 2007
Types of finance and leasing product
Finance leasing is the most common product at the point of sale
Consumer automotive insurance, warranty and assistance markets
Market sizes
Motor insurance accounts for the bulk of revenue...
...with a comparatively small role for creditor insurance, road assistance
and extended warranties
Types of creditor insurance policy
Creditor insurance policies sold in Thailand go beyond death and permanent
disability
Types of motor insurance policy
Those buying motor insurance through dealers often take out more than
liability cover
Automotive dealer survey
Provision of consumer automotive financial services
It is extremely common for car dealers in Thailand to offer both finance /
leasing and motor insurance
Number and nature of schemes
Finance / leasing and motor insurance are frequently offered in
collaboration with non-tied partners
Consumer uptake of automotive financial services
More than half of Thai new car buyers take out some form of auto finance
Competitor dynamics: dealer partnerships
Finance and leasing: Thanachart and Tisco have established themselves as
important partners for dealers
Creditor insurance: several dealers were found to offer creditor insurance
Motor insurance: the majority of dealers co-operate with non-tied providers
GAP insurance: this product exists but is not well-known in Thailand
Extended warranties: more than a third of dealers promote extended
warranties
Road assistance: this product is frequently distributed with new cars
Automotive manufacturer brand survey
Provision of consumer automotive financial services
The weighted provision rates for manufacturers are especially high for
motor insurance
Finance and leasing: several manufacturer brands work with captive finance
providers
Creditor insurance: ten manufacturer brands provide creditor insurance
through an indirect relationship
Motor insurance: over three quarters of manufacturer brands sell motor
insurance
Extended warranties: manufacturers normally offer extended warranties on
an internal basis
Road assistance: almost all manufacturer brands distribute road assistance
LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY 1
Key market data for consumer automotive financial services in Thailand,
2011 2
1.0 INTRODUCTION 3
2.0 MARKET ANALYSIS 10
Passenger car parc and new / used passenger car sales in Thailand, 2007 to
2011 11
Passenger car parc and new / used passenger car sales in Thailand, 2007 to
2011 (data) 12
New car registrations in Thailand, segmented by manufacturer brand, 2010
13
New / used passenger car finance market in Thailand, segmented by
distribution channel: volumes, 2007 to 2011 14
New / used passenger car finance market in Thailand, segmented by
distribution channel: values, 2007 to 2011 15
New / used passenger car finance market in Thailand, segmented by
distribution channel: values and volumes, 2007 to 2011 (data) 16
% split between the different types of finance and leasing contract sold
at the point of sale in Thailand, 2011 17
Total revenues from consumer automotive insurance, warranty and assistance
markets in Thailand, 2011 18
Total revenues from consumer automotive insurance, warranty and assistance
contracts in Thailand, 2011 (data) 19
% split between the different types of creditor insurance policy sold at
the point of sale in Thailand, 201120
% split between the different types of motor insurance policy sold at the
point of sale in Thailand, 2011 21
% of dealers in Thailand offering each type of automotive financial
service, 2011 22
Average number of tied and non-tied schemes offered by dealers in Thailand
for each type of automotive financial service, 2011 23
Average number of tied and non-tied schemes offered by dealers in Thailand
for each type of automotive financial service, 2011 (data) 24
% of new and used car purchasers in Thailand acquiring each type of
automotive financial service at the point of sale, 2011 25
Provision of finance and leasing by dealers in Thailand, 2011: provision
rate, product sources and provider share of non-tied partnerships 27
Provision of motor insurance by dealers in Thailand, 2011: provision rate,
product sources and provider share of non-tied partnerships 29
Provision of extended warranties by dealers in Thailand, 2011: provision
rate and product sources 30
Provision of road assistance by dealers in Thailand, 2011: provision rate
and product sources 31
Comparison of the provision of each type of automotive financial service
by manufacturer brands and dealers in Thailand, 2011 32
Provision of finance and leasing by manufacturer brands in Thailand, 2011:
provision rate, operating models and weighted provider share of partnerships
34
Provision of creditor insurance by manufacturer brands in Thailand, 2011:
provision rate, operating models and weighted provider share of partnerships
36
Provision of motor insurance by manufacturer brands in Thailand, 2011:
provision rate, operating models and weighted provider share of partnerships
38
Provision of extended warranties by manufacturer brands in Thailand, 2011:
provision rate, operating models and weighted provider share of partnerships
40
Provision of road assistance by manufacturer brands in Thailand, 2011:
provision rate, operating models and weighted provider share of partnerships
42
