BANGKOK, 20 April 2011 – Kasikorn Leasing (KLeasing) is enjoying a better leasing business operation thanks to the rapidly growing car market while the number of car sale this year is expected to be as high as 900,000 units.
According to KLeasing Managing Director Isara Wongrung, the total vehicle sale in the first two months of 2011 was at 145,611 units, an increase of 40.37% compared with 103,735 units in the same period last year.
Kasikorn Research Center hence adjusted the vehicle sale projection for the whole year up to as high as 850,000 to 900,000 units, a rise of 6-12% year-on-year from the previous estimate of 830,000 to 870,000 units.
Positive factors driving the car market this year include expansion in the export sector, rising prices of agricultural crops, investment from the public and private sectors as well as the Pracha Wiwat social welfare scheme aimed at improving the standard of living of low-income people. Popularity for new car models, especially eco-cars was also helping boost the sale.
Thanks to the growing car market, hire purchase and leasing deals of KLeasing in the first quarter this year were 8.78 billion US dollars worth, up 37% year-on-year while loans for car dealers stood at 13.8 billion baht, up 46.3% year-on-year as car dealers want to stock more vehicles.
KLeasing’s outstanding loans were hence worth 57.74 billion baht, increasing by 24.84% while the nonperforming loan level remained low at only 0.93%, down from last year’s amount of 1.31%.