According to startup firm Carmudi Philippines,
car loans in the country will continue to grow at a double-digit rate with
25-percent increase in the first quarter of 2015.
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| Auto loans in PH faces bright future |
In a recent Whitepaper
event, the company report the growth of car financing in the Philippines as
well as other emerging markets. The survey provides an outlook into current and
future state of flourishing car financing and how consumer attitudes towards
credit have transformed in recent years.
According to Carmudi, “The
car demand in the Philippines continues to grow as more sellers offer
attractive rates coupled with very low downpayment from financial
institutions.”
In 2010, car loans reaches
to P436 billion pesos with more attractive products and low interest are being
offered by leading banks. However, global auto finance witnessed the decline in
2012 due to earthquake and tsunami in Japan and flooding in Thailand,
resulting in supply shortages from most
Japanese manufacturers.
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In 2013, local auto sales
gained its full recovery when the country received its first-ever investment
credit ratings along with steady GDP consumer auto financing sustained a
16-percent growth.
The online portal also
revealed that in the first quarter of 2015, local auto industry set another
milestone with a record-breaking of 21-percent growth. Passenger car sales
dramatically increased by 30-percent due to new models launched by
manufacturers.
Subir
Lohani, managing director of Carmudi Philippines, said, “Car financing has
always been an option that consumers in the Philippines look at when buying a
car, and data shows that the demand for auto loans in the country continues to
increase.”
Meanwhile,
auto loans in Indonesia forecast to reach
between 13 to 15-percent due to rising foreign direct investment, flourishing
consumer spending, and improved credit ratings.
In Pakistan, auto loans
increased by 20-percent due to amendments in regulation for car financing which
enabled banks to finance cars up to 9 years old.
