Thanachart moves into auto refinancing segment

       Thanachart Bank plans aggressive growth in auto-refinancing loans to lead the market by next year, says executive vicepresident Nophadon Ruengchinda.
       The bank entered the car-refinancing loan market in April and now has 2 billion baht worth of accounts. It is aiming for 5 billion by year-end and hopes to double the sum next year to top the segment.
       Ayudhya Capital Auto Lease Ltd (Aycal), a subsidiary of Bank of Ayudhya,now leads the market with its 10-billionbaht portfolio.
       "Being ranked number one in the car-loan business with long experience and expertise, we are ready to join the refinancing market, said Mr Nophadon.
       "As a result, we have entered into the market with an ambitious goal."
       The bank currently offers refinancing products in Greater Bangkok but it intends to expand the service from the fourth quarter of this year through its nationwide network of 246 branches.
       Thanachart - a mid-sized bank with a market-leading auto-leasing loan book worth about 200 billion baht - aims to maintain its share of 20-25% this year.The bank booked 45 billion baht in new car loans in the first seven months of 2009 and has set a target of 80 billion for the year.
       Mr Nophadon said the bank was maintaining the target even though it forecasts local new-car sales will total just 480,000 units this year - a 30% decline from last year's sales.
       The vehicle sector has been picking up since June with new car sales totalling 43,000 units per month compared with around 37,000 to 38,000 in the beginning of the year.
       The situation is expected to improve better in the fourth quarter, supported by an improving economic climate and seasonal factors, including the year-end motor show, he said.