Southeast Asia Auto Finance Market Size and Forecast (2019-2030)

Executive Summary

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 last 3-4 years.

Recent Developments in the Auto Finance Market in Southeast Asian Countries

Public Bank & PRO-NET Collaboration

• Public Bank partnered with Proton New Energy Technology Sdn Bhd (PRO-NET) to offer integrated financing solutions for smart energy vehicles. This initiative enables seamless online hire purchase applications 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:

• Expanding Middle Class and Urbanization: The rising middle class and rapid urbanization across SEA have contributed to higher disposable incomes, increasing demand for personal vehicles. The Philippines, in particular, saw remarkable growth in its auto finance sector, with revenue surpassing USD 22 billion in 2024 and 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 promoting vehicle ownership and the transition to electric vehicles (EVs) through supportive policies and incentives. Thailand, for instance, has set an ambitious target to ensure that 30% of its total vehicle production consists of EVs by 2030, demonstrating a strong push towards sustainable mobility.

Country Highlights:

• Thailand: The Thai economy witnessed a moderate recovery in 2024, driven by stable private consumption, a resurgence in tourism, and increased goods exports. GDP growth improved from 1.9% in 2023 to 2.7% by the end of 2024, with further expansion expected to reach 3% in 2025, supported by both domestic and international demand.
• Singapore: Singapore’s economy grew by an estimated 2.6% in 2024, slightly below the government’s projected 3.5%. GDP growth had slowed in 2023 to 1.1%, following 3.8% growth in 2022 and a significant 9.7% expansion in 2021. Despite this, Singapore’s high-income working-age population (15-64 years) continues to present a strong consumer base for auto financing. As disposable incomes rise, a greater number of consumers are expected to explore financing options for new and used vehicles, further fueling demand for auto loans.
• Malaysia : 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 during 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.

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 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.

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 Motorcycle Market & Auto Financing Growth

The Southeast Asian motorcycle market is poised for transformation in the coming years. While 2023 saw sales of approximately 12.72 million motorcycles and scooters, early 2024 data suggest a temporary slowdown, with key markets like Vietnam experiencing an estimated 11.5% decline. However, industry projections indicate a strong recovery, with the market expected to grow at a CAGR of nearly 3% from 2025 to 2029, driven by increasing urban mobility needs, rising disposable incomes, and advancements in electric two-wheeler adoption.

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.

Period of Study

• 2019 - 2024: Past and Present Scenario
• 2024: Base year of study
• 2025 - 2030: Future Outlook of the industry

Countries Covered

• Malaysia
• Thailand
• Indonesia
• Philippines
• Singapore
• Vietnam

Market Segmentation

• Type of Vehicle Financed (Passenger Vehicles, Commercial Vehicles, Two-Wheelers, Electric Vehicles)
• Lender Type (Banks, Non-Banking Financial Companies (NBFCs), Captive Finance, Credit Unions)
• Type of Loan (New Vehicle Loan, Used Vehicle Loan, Leasing, Fleet Financing)
• Loan Tenure (Short-term, Medium-term, Long-term)
• Fuel Type (Petrol, Diesel, Hybrid, Electric Vehicles)
• Geographical Location (Urban, Semi-Urban, Rural Markets)
• Vehicle Ownership (First-time Buyers, Existing Vehicle Owners)
• Price Range (Entry-level, Mid-range, Premium, Luxury)
• Preferred Mode of Finance (Bank Loans, Captive Financing, Leasing, Other Financial Institutions)
• Credit Interest Rates (Comparison Across Bank Groups and Lenders)
• Dealer Financing Scenarios (Retail Financing, Wholesale Financing for Dealerships)

Competitive Landscape

• Mergers, Acquisitions
• Funding Timeline
• Companies Covered

Market Players Covered

• 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)

Key Questions Answered

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

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

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

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

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

6. What role does loan tenure play in auto financing?

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

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

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

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

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

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

13. What are the projected growth trends for the auto finance market until 2030? Show more