Strong car demand boosts KLeasing's business

Underlying the lending business is the record car sale, with approximately 1 million units sold in the first nine months of this year. 

"In September alone, total car sales were 132,000 units due mainly to the government’s first-car buyer scheme and the increase in car production capacity. The government's scheme should boost Thai car buyers’ demand towards this year-end," said Isara Wongrung, executive chairman of Kasikorn Leasing. 

Kasikorn Research Centre estimated that total car sales in 2012 are likely to reach a record high of 1.32-1.37 million units, against previous projection of 1.28-1.35 million units. 

To Akaranant  Thitasirivit, managing director of Kasikorn Leasing, of total loans, hire purchase and financial lease amounted to Bt32.84 billion, while the remaining Bt30.76 billion was granted under the Auto Dealer Floorplan product. The company’s outstanding balance totaled Bt78.6 billion Baht, or 96.34 percent of this year’s target, while the company’s non-performing loans stood at 0.89 percent. 

In the 9-month period, the company’s net profit totalled Bt312 million.

Isara noted that the automotive market is expected to remain promising in 2013 after the end of first-car buyer programme, given pending car delivery ordered by the end of 2012. The government has recently decided to extend car delivery and related document submission period under the programme by 90 days. 

Moreover, sale promotions for new car models will remain available until the end of this year, particularly those eligible under the first-car buyer program. Upon the end of the program, car sales are expected to slow as the program has already drawn future car demand, and the automotive market will resume its normal mode. The 2013 car sales are likely to be in tandem with the normal market mechanism, he added.