Being at the forefront in the EV loan market, KASIKORN Leasing Company Limited (KLeasing) has launched K EV SHOP in response to customers’ prevailing lifestyle needs in the transition to a green energy car society. The first of its kind in Thailand, K EV SHOP is offering exclusive campaigns from leading EV manufacturers and KLeasing to K PLUS users, including preferential interest rates plus gift vouchers valued at 2,000 Baht. This initiative aligns with KBank’s strategy of becoming an ESG leader in the Thai market.
Tirachart Chiracharasporn, KLeasing Managing Director, said, “Thailand’s BEV market has been thriving this year. As an EV loan leader, KLeasing is an official auto loan provider for several major EV brands. To build upon our strengths while offering a positive customer experience, the company has launched K EV SHOP, which will serve as another distribution channel of EV brands under our partnership. The move aims to broaden our reach to K PLUS customers, now topping 21.4 million.
By leveraging data analytics to shed light on customers’ needs, KLeasing has introduced a campaign exclusively designed for KBank customers. We focus on customized solutions for customers buying new EVs. Initially, participating EV manufacturers include Audi, MG, Neta, AION, Porsche and BYD. Customers applying for auto loans to purchase new EVs from participating brands with KLeasing via K EV SHOP will get a Central Gift Card worth 2,000 Baht, from today until December 31, 2023. Customers may choose their preferred EV brand and sign up for our auto loan at www.kasikornbank.com/th/personal/autoloan/pages/k-ev-shop.aspx ”
Regarding Thailand’s EV market outlook, KResearch has projected that sales of BEVs will reach 68,000 units in 2023, a surge of 405 percent YoY, after EV sales totaled 41,844 units during the first eight months of 2023. As a result, the share of BEVs in the overall Thai automotive market increased to 8.6 percent, from the 1 percent reported for 2022. Overall growth in the EV market has been in alignment with growth of KLeasing’s auto loans (New EVs).
Tirachart added, “Sales of EVs may reach more than 75,000 units by the end of 2023. Regarding KLeasing’s operating results during the first nine months of 2023, the company was able to bolster growth in outstanding loans by 13 percent. Of the company’s overall auto loans (New Car), 72.5 percent were for ICE (internal combustion engine) vehicles, and 27.5 percent were for EVs. The share of KLeasing’s auto loans extended for the purchase of new EVs (brands that are KLeasing’s major partners) amounted to more than 21 percent of the total auto loan market, and this business grew by 400 percent YoY, which was higher than growth of EV sales in the market at approximately 340 percent. Additionally, KLeasing’s auto loans (BEV New Business) grew steadily, and the company’s customers were mostly KBank clients with sound asset quality.”
For 2024, KResearch is of the view that competition in the Thai BEV market will become more intense as foreign carmakers, including those from China, South Korea and Japan, are expected to launch their BEVs in Thailand. Given this, BEV sales may increase to 85,000-100,000 units, an increase of 25-47 percent, in 2024. It is expected that over the next 1-2 years, BEVs priced at 1 million Baht and above will continue to see ongoing sales growth compared to other passenger car segments. The share of EVs is set to increase to 17 percent of total passenger vehicle sales in 2023 and 21 percent in 2024. The cautious projection is based on economic factors, rising interest rates, stricter criteria in granting auto loans, and continuity of government policies.
Tirachart added, “The K EV SHOP campaign is designed to facilitate customers in buying cars that meet their lifestyle needs. It will also be connected to the previously launched Digital Self-Apply platform, allowing customers to apply for auto loans by themselves while also enjoying numerous special privileges. This pilot project is aimed at enhancing our lending standards for customers in the digital age. Plus, KLeasing is preparing to develop API services in connection with platforms of partner car companies. In the initial phase,our focus is to promote EV sales of partners, which will help increase market share of the company’s EV loans by another 3-5 percent to 25 percent.
We also aim to reach 10 percent of auto loan applications via online channels within three years. In addition, KLeasing continues to introduce projects in alignment with KBank’s ESG strategies to advance a green society. This includes the launch of proactive campaigns in collaboration with leading car dealers using KBank’s various platforms, including the K PLUS , to enhance the seamless service experience for KBank customers wishing to apply for auto loans.”
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