CIMB Thai Auto Co, a subsidiary of CIMB Thai Bank (CIMBT), anticipates a resurgence in the used car loan market by early 2025, fueled by economic recovery and declining interest rates.

Visit Phuengpornsawan, Managing Director, noted that the used car industry and its associated loans have reached their lowest point, with recovery expected in the first half of 2025.

After a challenging 2023, 2024 has shown signs of business improvement for CIMB Thai Auto, with increases in both loan volume and asset quality.

The company targets new loan bookings of 12 billion baht in 2024, aiming to grow to 14 billion baht in 2025.

They are focusing on selective loan growth, primarily targeting salaried individuals with strong credit histories verified by the National Credit Bureau (NCB).

By improving risk management, CIMB Thai Auto plans to lower its non-performing loan ratio below 1.9% next year.

The company is also looking to diversify its lending portfolio, expanding into car title and used motorcycle loans.

Over the next few years, CIMB Thai Auto aims to expand its total loans to 38-40 billion baht, with a focus on increasing its presence in the used motorcycle loan market and meeting the rising demand for car title loans.

A recent promotional campaign offers a 9.95% annual interest rate for car title loans, expecting to generate 3 billion baht in new title loan growth by 2025.