Krungsri Auto sets high growth target

Head of Krungsri Auto Group, Mr. Congsin Congcar

Krungsri Auto has set an aggressive growth target for its digital car loan service in response to consumer demand in the digital age.

It also plans to launch new automotive financial services on its digital platform this year.

Krungsri Auto, an auto lending unit of Bank of Ayudhya (BAY), under the Krungsri marketing brand, aims to increase new digital vehicle lending by 53% year-on-year in 2022, Congsin Congcar said. , head of Krungsri Auto Group .

The unit’s digital auto loans currently make up 6% of its total auto loan portfolio after offering the loan product through its mobile app, Go by Krungsri Auto, last year.

Congsin said car loan applications through the Krungsri Auto digital platform have seen positive growth, in line with changing consumer behavior amid the development of digital technology and social distancing during the pandemic.

Krungsri Auto also plans to expand the auto finance service on the digital platform to cover motorcycle loans as well as car title loans, namely Krungsri Car4Cash in the second half.

The move will contribute to the growth of digital lending and the full expansion of auto lending, he said.

For this year, Krungsri Auto expects to increase total auto loans in terms of new loan bookings by 173 billion baht, up 11% from the previous year.

The target is based on the assumption of an economic growth rate of 2.8%, new car sales of 810,000 units and the estimated value of total new car loans in the market at 499.50 billion. baht, representing a growth of 5% for this year.

Given the country’s economic rebound and positive demand for new car purchases and new car loans, Krungsri Auto has set its target for total new loan growth to double industry growth.

The target also took into account external shocks, Congsin said.

Demand for car credit has shown positive signs since the start of the year in line with the improvement in economic activity and consumer confidence. Additionally, internal business strategies, including product and service development and digitalization, would also support loan growth this year.

Amid several uncertainties, Krungsri Auto is still paying attention to asset quality and aims to contain non-performing loans (NPLs) to no more than 2% this year.

The bank will continue to help customers affected by the pandemic through debt restructuring after providing debt relief measures to 775,000 car loan customers during the pandemic.

Felix J. Dixon