Bangkok: TTB Leasing has indicated a slight growth in the motorcycle market for 2026 but expressed concerns that individuals unable to secure loans may resort to informal lending. The company's innovative approach, 'TTB Leasing,' aims to address the needs of vulnerable groups by utilizing AI and credit bureau data to fairly assess risk and provide financing options.
According to Thai News Agency, TTB launched "TTB Leasing," a motorcycle loan model designed to help those lacking access to traditional financing methods. This initiative follows a notable increase in cash-payment purchases, now at 25-30%, which reflects a higher rate of loan rejections in formal systems. TTB projects that motorcycle registrations will reach approximately 1.75 million units by 2026, marking a slight increase from the previous year.
Mr. Mongkol Pienpitakkit, Managing Director of TTB Leasing Co., Ltd., highlighted the rising cash purchases as indicative of consumers being rejected for loans within the formal system, potentially forcing them to seek informal lending. Motorcycles, particularly small and medium-sized ones, are essential for earning a living, accounting for 90% of the market share.
TTB has responded to these challenges by establishing a joint venture, "TTB Leasing Company Limited," in partnership with MBK, to offer a flexible and reliable hire-purchase loan model. This model caters to both internal combustion engine and electric motorcycles, aiming to transform the lending industry with AI, despite pressures like high household debt and slowing purchasing power.
TTB Leasing is pioneering the use of data from the National Credit Bureau Company Limited and a scoring system to streamline loan approvals. Customers with positive credit histories can receive immediate loan approvals, facilitating quicker access to vehicles essential for their businesses. The company also offers special interest rate programs to encourage responsible repayment habits.
Understanding the unique needs of vulnerable groups, such as migrant workers and delivery drivers, is crucial for TTB Leasing's mission to improve quality of life and sustain growth. Partnering with MBK, known for its deep understanding of customer behavior, TTB aims to rank among the top three market leaders within three years by focusing on comprehensive services and sustainable lending practices.