Toyota Motor has introduced a vehicle financing scheme in Thailand that is commonly used in Japan.

The scheme is intended to reduce monthly payments for customers purchasing Toyota vehicles. As Chinese automakers increase sales of low-cost electric vehicles in Southeast Asia, where Japanese brands have traditionally held a large market share, company is using lower monthly payments to compete with these manufacturers.

Under the financing scheme, known as zankure, a vehicle's estimated value at the end of a three- to five-year contract is set as its residual value. Buyers repay the difference between the vehicle's purchase price and its estimated residual value, resulting in lower monthly payments than those associated with conventional vehicle loans.

For example, under a five-year contract with a residual value of 30% and an interest rate of 4%, monthly payments can be approximately 30% lower than those under a standard loan. At the end of the contract, buyers have three options: return the vehicle, trade it in or purchase it by paying the residual value.

Toyota launched the programme in Thailand in August, making it available through nearly all its dealerships nationwide. Similar financing products have been offered on a limited basis in markets such as Singapore and Malaysia. Thailand is the first market in Southeast Asia where brand has introduced the scheme on a large scale.

Thai consumers have traditionally tended to purchase vehicles outright and retain them for extended periods. In recent years, instalment payments for products such as household appliances and motorcycles have become more common, providing a basis for the introduction of fixed monthly vehicle payment plans.

Company has also introduced the programme to address pricing transparency in the used-car market. Private transactions are widespread in Thailand, making resale values difficult to determine. Establishing residual values at the beginning of a financing contract could provide greater clarity on vehicle pricing during subsequent transactions. Brand says greater recognition of the resale value of its vehicles could affect the brand's competitiveness.

The initiative is part of company's efforts to increase revenue from value chain businesses beyond new-vehicle sales. The company aims to increase revenue from these businesses by 40% to JPY 3 trillion (US$ 18.9 billion) by the 2030 financial year. Used-car sales and financial services are among its areas of focus, with residual value financing included in its offerings.

Other Japanese automakers, including Honda Motor and Mitsubishi Motors, have also expanded their financing operations in markets such as Thailand and the Philippines. Companyhas held the largest share of Thailand's automotive market for nearly 50 years, with Japanese brands traditionally accounting for a substantial proportion of sales. Chinese-made EVs priced below comparable petrol-powered models have gained market share in recent years.

According to a research company, Thailand's passenger vehicle sales increased by 15% year on year between January and June. EVs accounted for 31% of sales, an increase of approximately 14 percentage points compared with the same period a year earlier. Government subsidies and an influx of surplus Chinese-made vehicles contributed to the increase.

China's BYD has introduced several models in Thailand, including the Atto 3 electric SUV. The vehicle is priced at approximately THB 670,000 (US$ 19,980), around 20% less than Yaris Cross SUV, which costs approximately THB 820,000. In 2025, BYD ranked third in Thailand by sales, behind Toyota and Honda.

According to the Japan External Trade Organisation, Chinese automakers' share of Thailand's registered vehicle market reached 26% in 2026, an increase of approximately 20 percentage points compared with 2021. Over the same period, the combined market share of Japanese brands, including Toyota, declined by approximately 21 percentage points to 64%.

A research company forecast that Thailand's annual new-vehicle sales would increase by approximately 50% to 950,000 vehicles by 2038.

Competition from Chinese automakers has prompted Japanese manufacturers to reassess their operations in Thailand. Suzuki Motor announced in 2024 that it would cease local production and subsequently sold its assembly plant to Ford Motor. Honda has consolidated its two assembly plants and reduced production capacity, while Nissan has ended production at one of its two assembly plants and concentrated output at the remaining facility.