Motorcycle hire company sees fifth year of growth
CAPITAL Summit has set its sights on significant growth in motorcycle hire contracts and outstanding loans in 2019.
Despite the Bank of Thailand increasing the national interest rate from 1.50 to 1.75 per cent, the company’s CEO also says Capital Summit will not aggressively hike motorcycle-hire interest rates.
For 2019, the leading motorcycle hire-purchase and personal loan service provider aims to achieve a 6 per cent growth in the number of new contracts, as well as increase the total operating income by 15 per cent.
“In 2018, Capital Summit is expected to witness an impressive growth of total outstanding loans by up to 27 per cent. In 2019, we aim to continue this trend of double-digit growth and have set a target of 19 per cent growth,” said Wichit Phayuhanaveechai, president and CEO of Summit Capital Leasing Co Ltd, during a press conference on Wednesday evening.
This is the fourth consecutive year that Capital Summit has seen an increase in motorcycle hire-purchase loans.
Their aim is to hit a fifth year in 2019, he said.
The northern region saw the highest growth of motorcycle hire purchases for the company, at 66 per cent in the first 10 months of this year. Meanwhile, the eastern region holds the highest proportion of the company’s total sales at 33 per cent, with Bangkok and central region coming second with 27 per cent of total sales.
Despite the general slowing of economic growth in the Thai economy, Capital Summit managed to increase contract booking in 2018 by 13 per cent.
However, the company expects the motorcycle leasing business to expand at a slower pace in 2019, and predict a modest 1- to 2-per cent growth, Wichit stated.
“Our forecast is in trend with the general macroeconomic trend, which is expected to grow at a slower pace in 2019,” he added.
Wichit also addressed the impact of the Bank of Thailand’s benchmark interest-rate hike on the company’s prospects.
“The hiking of interest rates from 1.5 to 1.75 per cent by the Bank of Thailand will have direct impact on our business,” he said. “This will increase our costs and lower our profit margins.
“However, Summit Capital will not aggressively increase the interest rates for our customers, as we believe that will discourage new customers from using our services.”
