Krungsri Auto, an auto lending arm under Bank of Ayudhya (BAY), aims for total lending to expand 9% this year, despite marginal growth projected for new domestic car sales.
The auto lender targets total loans outstanding to reach 400 billion baht, with new loans growing 3% to 199 billion this year, said Pairote Cheunkrut, head of Krungsri Auto.
Krungsri Auto forecasts the country's new car sales growth will inch up 1% to 1.05 million in 2019, assuming economic growth registers at 4%.
The marginal growth could be attributed to a high base effect, he said.
Krungsri Auto, in collaboration with many business partners across sectors, introduced a new business model called Krungsri Auto Ecosystem that provides customers financial and non-financial services through both offline and online channels.
The venture collaborates with automakers, car dealers, petrol station operators, insurers and e-marketplace providers to offer customers lifestyle services.
"With the new business model, Krungsri Auto moves beyond just providing car loans," said Mr Pairote.
The new model puts the bank's auto loan and related services on the omni-channel platform. Krungsri Auto has developed an online and digital platform to keep pace with customer requirements in the digital age, he said.
The company aims to lend 4 billion baht worth of new auto loans on the online platform this year, rising 50% from last year.
In 2018, Krungsri Auto delivered a 77% increase in online vehicle lending to 2.3 billion baht, well above the targeted 50%.
Overall auto loans outstanding surged 12% to reach 629 billion baht last year.
Strong growth was attributed to the lapse of the lock-up ownership period for cars bought under the first time car-buying scheme, said Mr Pairote.
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