Krungsri Auto, a leader in automotive finance under Bank of Ayudhya PCL, announced 8% year-on-year growth in its Krungsri Motorcycle's loan portfolio during the first half of 2021. With plans to enhance digital innovation to drive sales for partners, offer a full suite of products to answer consumer needs, and launch new features to capture the refinance segment, Krungsri Motorcycle expects its loan outstanding to reach 35 billion baht, an increase of 3%, and aims to maintain its market leadership in motorcycle finance.
Mrs. Kittiya Srisanit, Head of Krungsri Auto Group, Bank of Ayudhya PCL, said, "The motorcycle market landscape in the first six months of 2021 remained challenging due to reduced economic activity from COVID-19 control measures. However, Krungsri Motorcycle successfully maintained the growth of its loan portfolio at 8%, from the same period last year. The performance was achieved through our focus on leveraging digital innovation to maximize sale opportunities for our dealer partners. Krungsri Auto PromptStart, an innovation that allows customers to check their credit appraisal by themselves, has proven to be a highly useful tool for dealers in the period when online platforms have become a crucial marketing channel. In the first half of 2021, Krungsri Motorcycle's digital new lending volume via Krungsri Auto PromptStart saw a year-on-year increase of 194%."
"In addition, we constantly organize campaigns with various manufacturer brands and tailor offerings to respond to each brand's customer groups. The campaigns are delivered on both the brands' and Krungsri Auto's online platforms and dealership branches nationwide. Krungsri Motorcycle also focuses on comprehensively answering motorcyclists' financial needs through the most extensive suite of products in the market, covering every segment from new motorcycle and big bike financing, used motorcycle and big bike financing, and motorcycle refinance Car4Cash Motorcycle," added Mrs. Kittiya.
In the second half of 2021, Krungsri Motorcycle aims to sustain its business growth by supporting dealer and manufacturer brand partners in all areas and maintaining a balanced loan portfolio. To meet the needs of motorcycle owners seeking financial liquidity, Car4Cash Motorcycle recently launched a new campaign, "Full Credit for Big Bike," highlighting the feature of 100% maximum loan-to-value for big bikes of all models and cc*, covering both hire-purchase and auto loan.
Krungsri Auto forecasts that the new motorcycle market in the second half of the year will see a slight drop. However, new motorcycle sales throughout 2021 will remain at the same level as last year, with estimated sales of 1.53 million units or a growth of 1.1%. The motorcycle financing market is expected to increase at the same rate, with an estimated new lending volume of 45 billion baht.
"Despite the challenging market landscape, we believe that, with our strong foundation and readiness to support our customers and partners regardless of circumstances, Krungsri Motorcycle will retain its growth and market leadership in motorcycle finance. We target to achieve 35 billion baht in loan outstanding in 2021, an increase of 3%, and remain committed to our Responsible Lending practice to uphold the stability of the overall lending industry," concluded Mrs. Kittiya.
*Terms and conditions as designated by the loan service provider.