Southeast Asia Auto Finance Market Competitive Landscape - Market Share, Positioning, M&A, Company Profiles

Overview

SEA Auto Finance Market Competition is rising with Thailand showcasing opportunities for expansion

The automotive financing market in Southeast Asia is experiencing significant growth, driven by economic expansion, urbanization, and a rising consumer demand for vehicles. Additionally, the sector is evolving with innovations such as online loan applications and specialized services for electric and hybrid vehicles, making auto finance more accessible and customer-centric.

The Southeast Asia auto finance market is led by key countries such as Thailand, Malaysia, Indonesia, the Philippines, Vietnam, and Singapore, with Thailand’s auto finance market stands out due to its strong automotive industry and high vehicle ownership demand.

Indonesia follows closely, with rapid market growth driven by urbanization and rising consumer financing needs. A vital role is played by Singapore in the market, thanks to its highly developed financial infrastructure. Significant contributions are also made by Malaysia and Vietnam, with steady growth observed in both new and used car financing. The market is continuously evolving, with emerging opportunities in electric vehicle (EV) financing further shaping the competitive landscape across the region.

The report encompasses a diverse range of players, including banking institutions, non-banking financial companies (NBFCs), and specialized service providers. Leading banking institutions such as Public Bank Group, Bank of Ayudhya Public Company Limited (Krungsri), TMB Thana Chart Bank, BDO Unibank Philippines, Philippines National Bank (PNB Savings Bank), Security Bank, Robinsons Bank, etc, play a crucial role in offering financing solutions. In addition to traditional banks, non-bank financial companies like PT BFI Finance and Mandiri Tunas are actively contributing to the market's growth.

Market players cater to diverse segments, including financing for new and used cars as well as electric vehicles (EVs), reflecting their broad influence on overall market dynamics. In 2023, Krungsri Auto secured roughly one-third of Thailand's EV loan market and aimed to finance around 6,000 electric motorcycles, highlighting the country's growing presence in the Southeast Asian auto finance landscape. This expansion, particularly within the EV sector, underscores Thailand’s pivotal role in shaping the region's evolving mobility trends.

As the market continues to expand, the combined efforts of banks, NBFCs, and captives, along with the introduction of new financing products, are shaping the future of auto finance in Southeast Asia, ensuring its continued growth and development.

Recent Developments in the Southeast Asia Auto Finance Market

The automotive financing sector in Southeast Asia continues to evolve, driven by strategic acquisitions, partnerships, and innovative financing solutions. Key market players are expanding their presence through mergers and collaborations, shaping the region's financial landscape.

• SCB X Public Company Limited (SCBX) announced on February 28, 2024, the acquisition of Home Credit Vietnam Finance Company Limited, a major player in Vietnam auto finance growth. The deal, valued at approximately VND 20,973 billion (THB 31 billion), marks a significant expansion in the Vietnamese car finance industry. The transaction is expected to be finalized in the first half of 2025, subject to regulatory approvals.

• VPBank's strategic partnership with BYD, along with BIDV and VietinBank, was announced on July 18, 2024, focusing on electric vehicle financing in Southeast Asia. This collaboration allows buyers to finance up to 85% of the vehicle's value, with competitive interest rates starting at 7.9% per year, reflecting the growing demand for EV financing solutions in the region.

• TPBank successfully completed the acquisition of Vietnam Fortune Capital (VFC) on March 28, 2024. As a result, VFC became an affiliate of TPBank, which now holds a 75% stake, with the remaining shares distributed among other shareholders. This move strengthens TPBank’s position in Vietnam’s auto finance market, enabling broader financing options for consumers.

These recent Southeast Asia auto finance mergers and acquisitions highlight the region's dynamic financial ecosystem, where top auto finance companies in Southeast Asia are actively expanding their market reach. With continuous digital transformation in Southeast Asia auto finance, strategic collaborations, and a rising focus on non-banking financial companies in Southeast Asia auto finance, the industry is set for further growth in the coming years.

Market Share of Key Players in Singapore Auto Finance Market, (%) 2023

As of 2024, Maybank Singapore is the leading player in the consumer auto finance market, holding over more than 25% of the market share. The bank also maintains a dominant position in both the electric vehicle and Islamic auto finance segments. Other key players in the Singapore auto finance market include Guan Chao Holdings Limited, OCBC Bank, and Hong Leong Finance.

The Indonesian auto finance market, a key component of the Southeast Asia auto finance market, is moderately fragmented, with the top five players collectively holding over 40% of the market share. Around 42% of the market remains highly fragmented, involving several smaller companies operating within the country. Captive NBFCs, such as Toyota Astra and Suzuki Finance, primarily cater to their respective OEM brands, while broader financial institutions like BCA Finance and Mandiri Finance provide financing options for all major OEM brands. This diverse structure reflects the dynamic nature of Indonesia's auto finance sector within the larger Southeast Asian landscape.

In 2023, Public Bank emerged as the market leader in Malaysian auto finance, securing more than  30.00% of the vehicle hire purchase financing share. The bank experienced a more than 10.00% annual growth in vehicle hire purchase financing and more than 5.00% growth in its total loan portfolio.

Scope of Southeast Asia Auto Finance Competitive Landscape Market Report

Makreo Research has recently published a study titled “Southeast Asia Auto Finance Market Competitive Landscape-Market Share, Positioning, M&A, Company Profiles” offering a detailed analysis of key players influencing market dynamics in Southeast Asia. The report features leading Auto Finance companies, including Public Bank Group, Bank of Ayudhya Public Company Limited (Krungsri), TMB Thana Chart Bank, PT BFI Finance, Mandiri Tunas Finance, BDO Unibank Philippines, Philippines National Bank (PNB Savings Bank), Security Bank, Robinsons Bank, Maybank Singapore Limited, OCBC Bank Limited, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcom Bank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).

The study begins with a competitive review of financial institutions and lenders with significant market shares, evaluating their loan portfolios, interest rate strategies, market revenues, lending performance, and focus on different vehicle segments. It emphasizes digital transformation and financial innovation, assessing new financing models, risk management strategies, and regulatory developments shaping the sector. This comprehensive analysis provides industry professionals and stakeholders with valuable insights into the competitive landscape, market trends, and growth opportunities within Southeast Asia’s expanding auto finance market.

Competitive Landscape

This section presents a market comparison of the leading companies in the Southeast Asia Auto Finance market, evaluating them across various market-related parameters.

M&A/Investments and Funding Timeline

This section reviews the recent mergers, acquisitions, and investments of the companies listed below, along with the latest funding trends in the market.

1. Who are the leading financial institutions in the Southeast Asian auto finance market?

2. What are the key factors driving the growth of auto financing in Southeast Asia Auto Finance market?

3. What are the dominant financing models (e.g., traditional loans, leasing, BNPL) in the region?

4. Who are the key market players in the auto finance sector across Malaysia”

5. Which company is dominant in Thailand auto finance market?

6. Who are the leading players in Indonesia auto loan market?

7. What is the market share of auto loan companies in the Philippines?

8. How are interest rates and lending policies affecting vehicle affordability and financing adoption?

9. What role do digital lending platforms and fintech companies play in shaping competition within the auto finance market?

10. How is the rise of electric vehicles (EVs) influencing auto financing trends in the region?

11. Which countries dominate the Southeast Asia ‘s Auto Finance Market?

12. How is the hire purchase service shaping the auto finance market in Southeast Asia?

Companies Covered