Banks expect stronger growth for electric vehicle (EV) loans this year, driven by improving demand in the auto segment amid rising oil prices.
TMBThanachart Bank (ttb), one of the country's leading auto lenders, expects EV loans to account for 35% of total new car loans this year, up from 25% in 2025.
During the first two months of this year, EV loan approvals represented 30% of total new car loan bookings, said bank president Thakorn Piyapan.
"Some consumers still prefer gasoline-powered cars, but they are concerned about rising energy prices, shifting their attention to EVs," he said.
The bank's EV customers are largely in the upper-income segment and typically are purchasing an EV as a second car. They often compare the cost effectiveness of fuel expenses with electricity costs, said Mr Thakorn.
As energy prices rise, ttb is monitoring the asset quality of its auto loan portfolio. The bank is ready to assist customers in easing their financial burden, he said, offering various debt restructuring programmes as the Thai economy trudges along in recent years.
The bank wants to contain non-performing loans in this segment. Around 70,000 car loans participated in debt restructuring programmes in 2023, increasing to 98,000 accounts in 2024 and 115,000 accounts in 2025, said Mr Thakorn.
Kampol Jantavibool, president of Kiatnakin Phatra Financial Group (KKP), another leading auto lender, expects EV loan growth to increase to 3-4% this year, up from an earlier projection of 1%.
Amid skyrocketing fuel prices, Mr Kampol said consumers are increasingly interested in EVs, reflected by growing demand at the ongoing Thailand International Motor Expo 2026. KKP plans to emphasise EV loans this year, he said.
"We expect EV loan growth of 3-4% in terms of new loan bookings this year, up from our earlier target of 1%. The bank is considering adjusting its auto loan strategies to align with demand in the EV segment," said Mr Kampol.
In addition, KKP is considering expanding its EV lending to cover a wider range of brands, moving beyond its previous focus on premium EVs priced at more than 1 million baht per unit.
Given rising oil prices and the government's gradual liberalisation of energy prices, the bank is monitoring the impact on auto borrowers, particularly pickups. Customers in this segment, mainly traders and farmers, have been significantly affected by higher fuel costs, he said.
Auto loan clients of KKP, including for pickups, have continued to service their debt as normal. However, the bank is prepared to offer various debt assistance programmes to help mitigate financial strain if needed, said Mr Kampol.
