KLeasing and carmakers join for special loan campaigns
Kasikorn Leasing Co, a subsidiary of Kasikornbank, will collaborate more with carmakers to offer special campaigns to buyers in a move to acquire "quality" borrowers and maintain loan growth amid the downturn in domestic auto sales.
In the first half of this year, KLeasing began offering special campaigns to Honda car buyers, with the same conditions Honda Leasing offered, in collaboration with the company, said Surat Leelataviwat, managing director of KLeasing.
Now the company is doing something similar for Toyota car buyers in collaboration with that automaker, he said, adding that it plans to have more such partners in the current second half of the year.
"Compared with the cost of NPLs [non-performing loans], the cost of these campaigns is acceptable. Meanwhile, we have chosen to do campaigns with targeted manufacturers, and this strategy will help the company to meet its loan-growth target of 1.5 per cent to outstanding loans of Bt90 billion" by the end of the year," he said.
Surat said KLeasing planned to target its campaigns at commercial-vehicle fleets in the second half, as sales in this category posted growth in the first half, while those of private cars and pickups dropped.
Domestic auto sales in the first half totalled 369,109 units, slumping 16.3 per cent year on year, while sales of commercial vehicles rose by 12 per cent to 50,646 units.
This sales growth was driven by logistics activities in border provinces.
Loans to truck buyers account for 19 per cent of the KLeasing portfolio, an increase from 17 per cent two years ago.
"We will be able to grow in this segment when the Asean Economic Community becomes effective, which we will collaborate with fleet cars and retail operators who demand to buy 1-2 trucks," he said.
The Excise Department’s tax reforms coming into effect next year will not cover big trucks, while private passenger cars will be affected, he added.
In the first half, KLeasing posted new loans of Bt30.4 billion, up by 3.76 per cent year on year, but its outstanding loans grew by only 0.96 per cent to Bt88.90 billion, and NPLs rose to 1.29 per cent from 1 per cent at the end of last year.
The company believes its new strategies will keep the NPL rate from exceeding 1.5 per cent by the end of the year.
