Krungsri Auto, the automotive finance arm of Krungsri (Bank of Ayudhya), aims to maintain its leadership in electric vehicle (EV) lending as demand rises amid surging oil prices.
Last year, EV loans accounted for around 40% of the company's total outstanding new car loan portfolio, with the proportion rising further in the first three months of 2026.
The growth was partly driven by strong demand at the Bangkok International Motor Show 2026, which runs from March 25 to April 5, reflecting growing consumer interest in EVs as petrol prices rise, said Chayathip Phanmanee, head of Krungsri Auto Group.
Given stronger EV demand, the company expects the proportion of EV loans to reach 45% of the total by year-end. Although car buyers are more interested in EVs, she said they still have concerns over limitations such as charging infrastructure, driving range and price stability.
Krungsri Auto has been offering EV loans for five years as the segment expands, growing it through its digital platform, Krungsri Auto PromptStart.
The company was among the first lenders to offer used EV loans in Thailand.
"We expect EV demand to continue increasing in line with improving market stability and rising fuel prices, with Krungsri Auto maintaining our leading position in this segment this year," said Ms Chayathip.
The company targets total car loan growth of 6% this year in terms of new bookings, valued at 162 billion baht, with a projected 25% market share. This growth target assumes domestic new car sales of 600,000 units this year.
New and used car loans each account for 45% of Krungsri Auto's portfolio, with 10% in motorcycle loans. The company's auto loan approval rate is 87%, while its non-performing loan (NPL) ratio remains controlled at 2%.
Ms Chayathip said Krungsri Auto is confident it can achieve auto loan growth while managing NPLs prudently amid heightened risks and uncertainties.
The company plans to continue strengthening the capabilities of the Krungsri Auto PromptStart platform and expanding its digital infrastructure through partnerships, she added.
Despite uncertainty over the conflict in the Middle East, Krungsri Auto believes it can continue growing its loan portfolio while keeping NPLs at an acceptable level of around 2% this year, Ms Chayathip said.
Krungsri Research forecasts Thai GDP growth of around 2% this year, with a potential downside risk of 0.6-0.9% should geopolitical tensions in the Middle East intensify. The automotive sector is expected to remain subdued.
For 2026, Krungsri Auto projects new car sales of 600,000 units, down 3% year-on-year, and new motorcycle sales of 1.72 million units, a dip of 1%. The total automotive finance market is projected to reach 384 billion baht, down 4% year-on-year.
