Ayudhya Capital Auto Lease Public Company Limited (Krungsri Auto) has set a target for collecting at least 173 billion baht in automobile insurance premiums this year, amid rising interest in electric vehicles (EVs).
Congsin Congcar, head of Krungsri Auto, said the overall outlook for the auto industry this year is more positive due to the recovering local economy, relaxing COVID prevention measures, and expanding vaccine coverage.
He added that Krungsri Research projects that Thailand’s GDP this year will grow 2.8%. Krungsri Auto meanwhile expects new insurance premiums in 2022 to reach 499.5 billion baht, an increase of 5%, with new vehicle sales hitting 810,000 for a bump of 6% year-on-year.
Krungsri Auto forecasts that new auto premiums will constitute 45% of its profit portfolio this year, with premiums from second-hand vehicles and motorcycles contributing 46% and 6%, respectively.
Pornthep Thirasuntrakul, senior marketing director for Auto Financing, said EVs have gained considerable traction among members of the public. He attributed the positive outlook to EV price tags – ranging from 750,000 to 1 million baht – and government incentives for people buying EV for the first time. He also cited the sheer hype currently revolving around EVs, further amplified by this year’s ongoing Motor Show.
Pornthep also noted that the EV market grew 56% last year, while projecting that 2022 will continue to see surging interest. (NNT)