CIMB Thai Auto upbeat

CIMB Thai Auto Co, the auto lending arm of CIMB Thai Bank (CIMBT), is bullish that its lending will surpass the target of 18 billion baht this year after shifting focus to salaried workers from farmers.

The company’s used car and auto equity loans year-to-date have soared 30% from a year earlier to 13.8 billion baht, with loans expected to surpass the full-year target, said managing director Visit Phuengpornsawan.

Loans outstanding are forecast to reach 36 billion baht at year-end, he said. CIMB Thai Auto’s loans outstanding amounted to 34.8 billion baht at the end of September.

“In the next two years, we expect loans outstanding to reach 50 billion baht, driven by organic growth,” Mr Visit said. “Fast Forward, the business scheme initiated by CIMB Thai, our parent company, is improving the company’s operations, customer service and marketing strategy.”

Amid intense competition and falling farm income, the company has revised its marketing and pricing strategy every quarter in line with the market and economic risks.

CIMB Thai Auto’s strategy to focus on salaried workers helped it avoid negative impacts from declining farm income, Mr Visit said.

Salaried employees account for 65% of total clients, up from 30% in the past. The company managed to maintain its non-performing loan ratio at 0.83%, below its target of 0.9%.

“For this year and next, we will focus on salaried workers while maintaining our farming customers,” Mr Visit said.

The company plans to seek the central bank’s approval to offer car equity loans for which ownership transfer is not required, he said.

At present, the company offers used car and equity auto loans for which ownership needs to be transferred.

CIMB Thai Auto also plans to adopt technology to develop an app that lets customers apply for loans and be pre-approved.

Auto equity loans are expected to be available on the app from this quarter, with online service extended to used car loans, electronic signature and digital authentication later.

CIMB Thai Auto’s net profit surged by 95 million baht or 22% year-on-year for the three months to September.