FRIDAY, March 29, 2024
nationthailand

KLeasing tips 4.1% increase in new loans

KLeasing tips 4.1% increase in new loans

KASKIKORN Leasing Co Ltd (KLeasing) expects to write Bt110 billion in new loans this year, rising 4.12 per from last year’s issuance, executive chairman Sasawat Virapriya said yesterday.

Sasawat Virapriya said this year the company would prioritise the launch of marketing campaigns, leveraging Kasikornbank’s (KBank) strength in service and customer networks. 
It would also focus on expanding its online service channels and the development of digital platform for comprehensive service capability with respect to financing approval and after-sales assistance, he told a press conference.
 KLeasing will work with its business partners and car dealers nationwide to expand the value of its new loans to achieve the target this year.
In 2018, the company wrote out new loans worth Bt105.64 billion, up 24.39 per cent from 2017. The amount for auto hire purchase, leasing and car registrations came to Bt43.51 billion, with floorplan loans reaching Bt62.13 billion, rising 8.72 per cent and 38.36 per cent year on year, respectively.
 With outstanding loans growing 11.36 per cent year on year to Bt108.08 billion and non-performing loans (NPLs) rising 1.32 per cent, KLeasing's profit surged 29.78 per cent year on year to Bt1.4 billion. The brighter performance was in line with the domestic car market in 2018, which recorded the highest sales in five years, totalling 1,041,739 units.
Regarding the domestic car market, KResearch expects between 980,000 and 1.01 million vehicles will be sold this year, shrinking by 2-5 per cent when compared to the figure in 2018. The sales volume is adjusted toward normalcy after a rapid surge in the previous year. 
Eco-car are poised to enjoy bright prospects in the passenger car category as automakers plan to roll out new models of eco-hybrid cars and mild-hybrid vehicles, while the government is set to provide tax incentives to make prices of environmentally friendly vehicles more competitive. 
The KResearch report says customers are likely to embrace the innovative technology of electric vehicles. 
Moreover, other electric vehicles, such as plug-in hybrids and battery electric vehicles, should grow further after a number of car makers have decided to produce such cars in Thailand for commercial purposes. 
The upcoming general election and expanding public investment should also contribute to a growing pick-up market in Thailand.
On the market outlook for auto hire purchase, the overall growth of auto hire purchase is expected to decelerate to 4.5-6.5 per cent in 2019, due mainly to new car sales. 
The market had expanded by over 13 per cent last year to exceed Bt 1.06 trillion, marking the first double-digit growth in six years. The buoyant turnover last year was a result of new car sales and the slowdown of car-loan repayments after the end of the first-car scheme's lock-in period, the research said.
 

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