Resurgent car purchases drive up KLeasing net profit

“As the auto industry has turned around after being hit by the severe floods last year, domestic car sales in the first quarter rose 16.3 per cent to 277,631 units from the same quarter last year. In March alone, domestic car sales hit a record of 110,928 units,” managing director Akaranant Thitasirivit said yesterday.
The company’s new loans climbed 26.78 per cent to Bt17.52 billion, beating the target of Bt13.03 billion while pushing outstanding loans to Bt66.82 billion, also above the target of Bt64.79 billion.
Non-performing loans were 0.97 per cent of the total, lower than the target of 1.15 per cent.
The net profit of Bt102 million was better than the target of Bt98 million, he added.
Executive chairman Isara Wongrung said domestic new-car sales this year were expected to race ahead by 32-38 per cent to between 1.05 million and 1.1 million units.
Competition in the leasing business should ease and loan rates should remain steady for a while, he said. Leasing companies will focus on marketing via dealers to diversify risk and accrue more customers.
The government might extend its first-car scheme beyond this year, but ordered cars cannot be delivered to buyers in time, as many assembly plants still cannot run at full capacity because of lingering supply disruptions.
“The government is expected to renew the first-car scheme by six months or one year, which can be part of a good economic stimulus package,” Isara said.
KLeasing’s marketing strategy this quarter will continue to focus on customer needs, he said. Eco-cars, supercars and pickup trucks are expected to gain popularity. The company has designed its sales promotions and marketing campaigns along this trend.
It is studying motorcycle |leasing, especial for big bikes, |and might start marketing to this segment in the second half, he added.