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High depreciation of EVs raises loan concerns says National Credit Bureau
Picture courtesy of Bangkok Post The National Credit Bureau (NCB) raised concerns about the high depreciation rates of electric vehicles (EVs) and the associated loan risks. As the popularity of EVs, particularly Chinese brands, continues to rise, so does the volume of loans attributed to their purchase. However, EVs depreciate faster than traditional internal combustion engine (ICE) cars, which has heightened the risk for auto loan providers.
NCB Chief Executive Surapol Opasatien highlighted the issue.
“In the case of an accident involving an EV battery, the car’s value would drop significantly. The value of used EVs, particularly those that are five years old or older, deteriorates more quickly than ICEs.”
As a result, the NCB will be keeping a close watch on the quality of loans granted for EV purchases.
Several captive EV leasing companies have expressed an interest in…
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