Krungsri Auto targets outstanding loans to surpass 400 billion baht, driving new business model to fulfill automobile lifestyles

Stocks and Financial Services Press Releases Wednesday March 27, 2019 13:29
Bangkok--27 Mar--Fleishman Hillard

Krungsri Auto, a leader in automotive finance under Bank of Ayudhya PCL, today announced its 2018 performance with impressive new lending volume growth of 16%, worth at 193 billion baht, outperforming the industry growth. Targeting to maintain one-fourth of the auto finance market share in 2019, Krungsri Auto aims to achieve 400 billion baht in loan outstanding. The auto finance service provider also announced its adoption of the new business model, centering around building the 'Krungsri Auto Ecosystem' and providing lifestyle service offerings for automobile users.

Mr. Pairote Cheunkrut, Head of Krungsri Auto Group, Bank of Ayudhya PCL, said "2018 saw the continuous expansion of both automotive and auto finance markets, which was primarily propelled by robust new car sales of over one million units. Topped by the substantial progress in Digital Customer Engagement initiatives, Krungsri Auto continued to deliver strong results, with 193 billion baht in new lending volume, a year-on-year increase of 16%, and 368 billion baht in loan outstanding, 14% growth from the previous year."

In 2019, Krungsri Auto aspires to continue pushing boundaries in the auto finance industry and fulfill the lifestyle needs of automobile users through a new business model. "At Krungsri Auto, we are committed to understanding and responding to consumers' needs. We recognize that to truly engage with customers, we can no longer view them simply as 'automobile buyers', but we must also be able to tap into their lifestyles and life stages. This year, Krungsri Auto is driving a new business model, which is based on the 'Krungsri Auto Ecosystem,' the approach that will enable us to connect various lifestyle activities of automobile users and facilitate them to access information and services via Krungsri Auto's platform conveniently. Throughout the year, we will be looking to join forces with partners across different industries and develop loyalty programs to provide customers with better experiences and privileges," added Mr Pairote.

To build the 'Krungsri Auto Ecosystem', Krungsri Auto plans to develop three main elements. Firstly, it will establish 'Partnerships' to offer both lending and lifestyle services. Secondly, Krungsri Auto will work to develop 'Marketplaces' where automobile sellers and buyers can exchange goods and information. Most importantly, it will launch the 'Super App', a gateway through which customers can access a variety of services at their fingertips. The first service is expected to be unveiled within this year.

"As the Digital Market Shaper, Krungsri Auto's ultimate goal is to enhance customer engagement by applying the new business approach and offering services beyond auto loans. We expect steady growth of our loan portfolio in 2019, with loan outstanding projected to surpass 400 billion baht, an increase of 9%. We also set to achieve 199 billion baht in new lending volume, up 3% from 2018, and believe that we will continue to maintain one-fourth of the auto finance market share," concluded Mr Pairote.

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