Marktanalyse - Consumer Automotive Financial Services in Thailand

Marktanalyse - 'Consumer Automotive Financial Services in Thailand'

Consumer Automotive Financial Services in Thailand investigates the market for automotive financial services linked to sales of new and used passenger cars in Thailand. In addition to analysing the market for finance and leasing services, the study also covers creditor insurance, motor insurance and road assistance, and demonstrates the extent to which a market exists for extended warranties and GAP insurance. Using survey results for average take-up rates for finance and leasing propositions at the point of sale, data for the size and growth of the automotive finance and leasing market for consumers in Thailand is provided in terms of gross advances and assets leased for 2007 to 2011 with splits between finance for new and used cars and between finance organised through dealerships at the point of sale and directly with banks or other lending institutions. Moreover, also by means of data for average take-up rates, the markets for creditor insurance, motor insurance, road assistance, extended warranties and GAP insurance are sized in terms of gross written premiums and other revenues sold through the automotive trade (i.e. via dealers and manufacturers) in 2011. These are broken down between new and used cars and between new contracts sold during 2011 and in-force business sold in previous years but still being renewed in 2011. The report draws on a survey of 70 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of over 20 automotive brands in Thailand. The PartnerBASE™ database that accompanies the report details each of the marketing initiatives for consumer automotive financial services traced by Finaccord for both dealers and manufacturers. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in Thailand.

Inhaltsverzeichnis Marktanalyse 'Consumer Automotive Financial Services in Thailand'



TABLE OF CONTENTS

0.0 EXECUTIVE SUMMARY .. 1

1.0 INTRODUCTION 3

What is this report about? .... 3

The focus of the report is on financial services related to the sale of passenger cars to individuals . 3

Rationale . 3

The provision of financial services is essential to support both car sales and profitability... .... 3

… with huge diversity in these services between countries and products…... 3

… which have yet to be explored in detail . 3

Methodology 4

Survey of dealers and manufacturers ... 4

Market data ... 5

Computation of market data is based on a complex set of assumptions and variables… . 5

…in order to provide market segmentations in unrivalled detail .. 5

Definitions .... 6

Finance and leasing products 6

Insurance, warranty and assistance products 7

Captive, internal and tied providers . 7

Abbreviations 7

PartnerBASE™ 8

Finaccord 8

2.0 MARKET ANALYSIS 10

Introduction 10

Passenger vehicle data 11

New car sales have grown much faster than the overall car parc… ... 11

…while used cars are still mostly sold outside the dealer channel . 11

Toyota and Honda jointly account for more than 60% of the market in new car registrations.... 13

Consumer automotive finance and leasing market ... 13

Market size and growth .. 13

Slightly more passenger cars were paid for in cash rather than financed in 2011 .. 13

The total value of car finance and leasing has more than doubled since 2007 . 14

Types of finance and leasing product . 16

Finance leasing is the most common product at the point of sale .. 16

Consumer automotive insurance, warranty and assistance markets .... 17

Market sizes 17

Motor insurance accounts for the bulk of revenue… ... 17

…with a comparatively small role for creditor insurance, road assistance and extended warranties .. 18

Types of creditor insurance policy . 20

Creditor insurance policies sold in Thailand go beyond death and permanent disability . 20

Types of motor insurance policy .... 21

Those buying motor insurance through dealers often take out more than liability cover .. 21

Automotive dealer survey .. 22

Provision of consumer automotive financial services . 22

It is extremely common for car dealers in Thailand to offer both finance / leasing and motor insurance .. 22

Number and nature of schemes .... 22

Finance / leasing and motor insurance are frequently offered in collaboration with non-tied partners 23

Consumer uptake of automotive financial services .... 24

More than half of Thai new car buyers take out some form of auto finance . 24

Competitor dynamics: dealer partnerships ... 26

Finance and leasing: Thanachart and Tisco have established themselves as important partners for dealers .. 26

Creditor insurance: several dealers were found to offer creditor insurance .. 28

Motor insurance: the majority of dealers co-operate with non-tied providers 28

GAP insurance: this product exists but is not well-known in Thailand . 30

Extended warranties: more than a third of dealers promote extended warranties.. 30

Road assistance: this product is frequently distributed with new cars . 30

Automotive manufacturer brand survey . 31

Provision of consumer automotive financial services . 31

The weighted provision rates for manufacturers are especially high for motor insurance 31

Competitor dynamics: manufacturer brand partnerships 33

Finance and leasing: several manufacturer brands work with captive finance providers . 33

Creditor insurance: ten manufacturer brands provide creditor insurance through an indirect relationship .... 35

Motor insurance: over three quarters of manufacturer brands sell motor insurance ... 37

Extended warranties: manufacturers normally offer extended warranties on an internal basis . 39

Road assistance: almost all manufacturer brands distribute road assistance ... 41







Tabellenverzeichnis Marktanalyse 'Consumer Automotive Financial Services in Thailand'



LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY .. 1

Key market data for consumer automotive financial services in Thailand, 2011 .... 2

1.0 INTRODUCTION . 3

2.0 MARKET ANALYSIS 10

Passenger car parc and new / used passenger car sales in Thailand, 2007 to 2011 ... 11

Passenger car parc and new / used passenger car sales in Thailand, 2007 to 2011 (data) ... 12

New car registrations in Thailand, segmented by manufacturer brand, 2010 . 13

New / used passenger car finance market in Thailand, segmented by distribution channel: volumes, 2007 to 2011 .. 14

New / used passenger car finance market in Thailand, segmented by distribution channel: values, 2007 to 2011 . 15

New / used passenger car finance market in Thailand, segmented by distribution channel: values and volumes, 2007 to 2011 (data) .. 16

% split between the different types of finance and leasing contract sold at the point of sale in Thailand, 2011 . 17

Total revenues from consumer automotive insurance, warranty and assistance markets in Thailand, 2011 18

Total revenues from consumer automotive insurance, warranty and assistance contracts in Thailand, 2011 (data) 19

% split between the different types of creditor insurance policy sold at the point of sale in Thailand, 201120

% split between the different types of motor insurance policy sold at the point of sale in Thailand, 2011 .. 21

% of dealers in Thailand offering each type of automotive financial service, 2011 ... 22

Average number of tied and non-tied schemes offered by dealers in Thailand for each type of automotive financial service, 2011 ... 23

Average number of tied and non-tied schemes offered by dealers in Thailand for each type of automotive financial service, 2011 (data) ... 24

% of new and used car purchasers in Thailand acquiring each type of automotive financial service at the point of sale, 2011 .... 25

Provision of finance and leasing by dealers in Thailand, 2011: provision rate, product sources and provider share of non-tied partnerships . 27

Provision of motor insurance by dealers in Thailand, 2011: provision rate, product sources and provider share of non-tied partnerships . 29

Provision of extended warranties by dealers in Thailand, 2011: provision rate and product sources .... 30

Provision of road assistance by dealers in Thailand, 2011: provision rate and product sources . 31

Comparison of the provision of each type of automotive financial service by manufacturer brands and dealers in Thailand, 2011 .. 32

Provision of finance and leasing by manufacturer brands in Thailand, 2011: provision rate, operating models and weighted provider share of partnerships .... 34

Provision of creditor insurance by manufacturer brands in Thailand, 2011: provision rate, operating models and weighted provider share of partnerships .... 36

Provision of motor insurance by manufacturer brands in Thailand, 2011: provision rate, operating models and weighted provider share of partnerships .. 38

Provision of extended warranties by manufacturer brands in Thailand, 2011: provision rate, operating models and weighted provider share of partnerships .... 40

Provision of road assistance by manufacturer brands in Thailand, 2011: provision rate, operating models and weighted provider share of partnerships .. 42

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