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Southeast Asia Auto Finance Market Size

The Southeast Asia (SEA) auto finance market has been steadily growing, fueled by rising vehicle demand, digital advancements, and shifting consumer preferences. From 2019 to 2024, the market recorded a Compound Annual Growth Rate (CAGR) of 3.33%, with total revenue increasing by USD 23 billion in the last 3-4 years.

Recent Developments in the Auto Finance Market in Southeast Asian Countries

Public Bank & PRO-NET Collaboration

• Public Bank has partnered with Proton New Energy Technology Sdn Bhd (PRO-NET) to introduce integrated financing solutions for electric vehicle financing in SEA. This initiative streamlines digital auto loan trends in SEA, enabling customers to apply for hire purchase financing online via the Smart Customer App, in collaboration with authorized dealers.

Krungsri Auto Broker & Chubb Life Thailand Extend Partnership

• Krungsri Auto Broker and Chubb Life Thailand have extended their 21-year partnership until 2025. Their focus remains on developing an online platform to enhance customer access to insurance products and policies. 

Mandiri Tunas Finance’s Growth Strategy

• Mandiri Tunas Finance (MTF) has set an ambitious 8.9% growth target for 2024, focusing on deeper penetration in the retail, corporate, and commercial segments. The company also aims to expand into the used car market and introduce multipurpose financial products. 

BPI-Robinsons Bank Merger

• The merger between BPI and Robinsons Bank, finalized on September 30, 2022, took effect on January 1, 2024. Valued at PHP 32 billion, BPI issued 314 million shares to JG Summit Holdings and Robinsons Retail Holdings, strengthening its position as one of the top lenders in the Philippines.

Key Growth Drivers of the Southeast Asia Auto Finance Market

• Expanding Middle Class and Urbanization: The rising middle-class population and rapid urbanization across Southeast Asia have led to higher disposable incomes and increased demand for personal vehicles. The Southeast Asia car loan market has particularly thrived in the Philippines, where auto finance growth has been significant. In 2024, the country’s auto loan industry surpassed USD 22 billion, recording a CAGR of 12.63% from 2019 to 2024, the highest among major SEA economies.

• Digitalization and Fintech Innovations: The proliferation of digital lending platforms and fintech solutions has significantly enhanced accessibility and efficiency in auto financing. In Indonesia, fintech companies such as Broom and Cermati are transforming the industry by introducing digital payment solutions and online vehicle financing services. 

• Government Support and Favorable Policies: SEA governments are actively supporting vehicle ownership trends and encouraging the adoption of electric vehicle financing in SEA. For instance, Thailand has set an ambitious target to make 30% of its total vehicle production electric by 2030, driving the transition towards sustainable mobility. These favorable policies are boosting the SEA auto finance industry, particularly in EV financing and leasing solutions.

Country Highlights in the Southeast Asia Auto Finance Market

Thailand: Economic Recovery Supporting Auto Finance Growth

The auto loan industry in Thailand has benefited from the country's moderate economic recovery in 2024, supported by stable private consumption, a resurgence in tourism, and rising exports. Thailand's GDP growth improved from 1.9% in 2023 to 2.7% in 2024, with projections to reach 3% in 2025. The expansion of SEA vehicle ownership trends and government incentives for electric vehicle financing in SEA are further driving demand for auto loans and leasing options.

Singapore: Rising Incomes Fueling the Auto Loan Market

Singapore’s economy expanded by 2.6% in 2024, slightly below the projected 3.5% growth target. After a slowdown in 2023 (1.1%), the country saw steady improvement following 3.8% growth in 2022 and a 9.7% expansion in 2021. Despite fluctuating GDP growth, Singapore maintains a high-income working-age population (15-64 years), which serves as a strong consumer base for the SEA car loan market. With rising disposable incomes, more consumers are expected to explore new and used car financing in Southeast Asia, increasing the demand for auto loans and digital auto finance solutions.

Malaysia: Stable Economic Growth Supporting Auto Finance Expansion
By the end of 2024, Malaysia's economy recorded a growth rate of approximately 4.8%, with an acceleration in the second quarter to nearly 6%, up from around 4% in the first quarter of the same year. This expansion was largely driven by strong domestic demand and sustained export growth. Household loan growth remained stable, primarily supported by housing and automobile loans.

Indonesia Preferred Mode of Auto Finance (%), 2023

Predominance of Credit Financing in Auto Purchases

• In Indonesia, a significant majority of auto purchases are financed through credit, while a smaller portion is made via cash payments. This strong reliance on credit financing highlights consumer preference for installment-based payment solutions over lump-sum transactions, making vehicle ownership more accessible.

Declining Car Ownership in Singapore and Its Impact on the Auto Finance Market

• The government’s push toward a car-lite society, coupled with increased public transport subsidies and enhanced alternatives like car-sharing and private-hire services, is resulting in a reduction of the demand for car ownership. This shift negatively impacts the auto finance market, as fewer households seek car loans or leasing services.

Strategic Development Plan for 2025 and Vision for 2030

• As part of its long-term strategy, Vietcombank refined its development roadmap through 2025, with a broader vision extending to 2030. The bank aims to strengthen its regional and global presence while leading advancements in digital transformation, reinforcing its position as a key player in the financial sector.

Southeast Asia Auto Finance Market Revenue Forecast, 2025 – 2030

Growth of the Digital Economy in Southeast Asia

The digital economy in Southeast Asia (SEA) is projected to surpass USD 300 Billion by 2025, driven by significant growth in internet users and widespread digital adoption across the region. Countries such as Malaysia, Singapore, and Thailand exhibit high internet penetration rates, while Indonesia presents considerable opportunities for further digital adoption in the coming years. The expansion of the digital economy is primarily fueled by sectors such as e-commerce and online media, reflecting a broader shift towards a digitally-driven economy.

Future Outlook - Southeast Asia Auto Finance Market & Motorcycle Industry Growth

The Southeast Asia motorcycle market is undergoing a period of transformation, closely linked to the SEA auto finance market. In 2023, motorcycle and scooter sales reached approximately 12.72 million units. However, early 2024 data indicate a temporary slowdown, with key markets such as Vietnam experiencing an estimated 11.5% decline. Despite this, industry forecasts project a strong recovery, with the market expected to grow at a CAGR of nearly 3% from 2025 to 2029. This growth will be fueled by urban mobility trends, rising disposable incomes, and increasing adoption of electric two-wheelers. As financing solutions continue to evolve, the SEA auto loan market is set to play a critical role in supporting both motorcycle and vehicle ownership trends across the region.

Scope of Southeast Asia Auto Finance Market Report  

Makreo Research has recently published an in-depth report titled " Southeast Asia Auto Finance Market Size and Forecast (2019-2030)-Analysis by Vehicle Financed, Lender Type, Loan Type, Vehicle Ownership, Price Range, and Geography (Malaysia, Thailand, Indonesia, Philippines, Singapore, Vietnam)". This comprehensive study analyzes the auto finance landscape across key Southeast Asian countries, including Malaysia, Thailand, Indonesia, the Philippines, Singapore, and Vietnam.

The report provides a detailed evaluation of the Southeast Asia Auto Finance Market, examining key market dynamics such as regional trends, historical and current market performance, and the regulatory landscape shaping the industry. It offers an extensive segmentation analysis across various parameters, including lender types, fuel types, loan tenure, and geographical distribution.

By assessing both historical and current market performance, the study highlights macroeconomic influences and trade dynamics impacting these six countries. Additionally, it profiles leading market players such as Public Bank Group, Bank of Ayudhya Public Company Limited (Krungsri), TMB Thana Chart Bank, PT BFI Finance, Security Bank, Robinsons Bank, and others, detailing their production capacities, sales performance, strategic initiatives, and financial activities.

The report also analyzes market revenue trends, future growth projections, and competitive landscapes, offering insights into mergers, acquisitions, funding activities, and strategic developments within the sector. It further explores the challenges and opportunities shaping market expansion, presenting a thorough assessment of market conditions at both the country and regional levels.

This extensive study serves as a valuable resource for stakeholders and industry professionals, equipping them with the insights needed to navigate the evolving auto finance market in Southeast Asia and make well-informed business decisions.
 

• What is the current size of the Southeast Asia auto finance market? 

• What are the key trends shaping the auto finance industry in Southeast Asia? 

• Which countries in the region have the highest demand for auto financing? 

• What are the different types of auto loans available in Southeast Asia? 

• How does auto financing vary by lender type (banks, NBFCs, captives)? 

• What role does loan tenure play in auto financing? 

• How does vehicle type (new vs. used, fuel type) impact financing options? 

• How does geographical location affect auto financing trends in Southeast Asia? 

• Which are the leading financial institutions in Southeast Asia's auto finance market? 

• What strategies are key players using to expand their market share? 

• How competitive is the market, and what are the key challenges for new entrants? 

• What are the trade dynamics affecting the auto finance sector in the region? 

• What are the projected growth trends for the auto finance market until 2030?