MANILA, Philippines - Toyota Financial Services Philippines Corp. (TFSPH) boosted its total loan portfolio by 41 percent to P24 billion in end June, driven by a growing middle class availing of auto loans.
TFSPH is part of Toyota’s network of sales finance companies under Toyota Financial Services Corp. (TFSC) that operates in over 35 countries worldwide.
The surge in loans was mainly due to the 53-percent expansion in auto loans in the first six months of the year to P7.5 billion, coming from 10,399 new customer accounts.
TFSPH president Mototaka Sato attributes the growth in auto loans to the increase in vehicles sales brought about by the rise in consumer spending.
“Toyota continues to offer quality vehicles that cater to each market segment’s needs, TFSPH will keep on tailor-fitting services to make owning a Toyota vehicle affordable for our customers,” he said.
Over the past two years, TFSPH noted a significant trend in increased auto financing for the middle class market with a monthly income of between P20,000- P100,000. From 28.9 percent in 2011 this market steadily grew to 54.4 percent in 2012 and 63.5 percent in 2013.
Growth was also reflected in the first half of 2013 and 2014, which recorded at 72.98 percent and 76.15 percent, respectively, a clear indication that the middle class in the Philippines, with its purchasing power, is rapidly expanding.
TFSPH’s data show that this market, whose age range is from 30 to 50 years old, is dominated by employed professionals at almost 50 percent, followed closely by self-employed or business owners at 28 percent, and overseas Filipino workers (OFWs) at 10 percent.
The most popular Toyota vehicles bought by the middle class market are the Vios, Innova and Avanza models.
TFSPH serves Toyota customers through financing and leasing services. It remains No. 1 in the finance and leasing industry in the country in terms of total assets.