Japanese lender Orico to provide used-vehicle loans in Philippines
MANILA, NNA - Major Japanese personal-loan firm Orient Corp. is set to enter the Philippine market through financing mainly used-vehicle purchases, stepping up its expansion plans in Southeast Asia.
The company, known as Orico at home, said last week it plans to establish wholly owned Orico Auto Finance Philippines Inc. in September upon regulatory approval and start operations in December.
The local unit, which will be capitalized at 600 million pesos ($11.4 million), aims to cash in on the growing auto market in the Southeast Asian country following its first overseas service launch in Thailand in 2015, according to its statement.
“The use of auto loans for secondhand cars stands at 50 percent of the total as only some local lenders offer such financing” although 80 percent of brand-new car buyers utilize auto loans, an Orico spokesman told NNA.
Orico eliminated its cumulative net loss for the Thai operation in the business year to March. It is also in talks for buyouts of local firms in Cambodia and Indonesia mainly to launch an auto loan business there, it said in its financial announcement last week.
The Tokyo-based company said it intends to boost net profit from operations in the four Southeast Asian countries 10-fold in three years from 100 million yen ($900,000) in the year to March.
Orico is also considering entering the Chinese market with its high demand for auto loans, the spokesman added. (NNA/Kyodo)