K Leasing: Automobile leasing market expected to shrink 12% this year

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BANGKOK, 6 August 2015 – The market for automobile leasing is expected to contract by 12-13 percent this year, according to Kasikorn Leasing Co., Ltd. (KLeasing).

Surat Leelataviwat, managing director of Kasikorn Leasing, a wholly-owned subsidiary of Kasikorn Bank Plc., disclosed on Wednesday that he expected a total of 780,000 new cars to be sold in 2015. This figure would represent a shortfall of 120,000 vehicles when compared with the 2014’s sales. Kasikorn Leasing is therefore shifting its emphasis toward dealers of automobiles for business use and the truck market. Special emphasis is being placed on the market for trucks used to transport cargo between countries in the Mekong region. Mr. Surat indicated that the aim was to achieve a whole-year lending growth of 1.5%.

He added that the impending adjustment of the excise rate on cars with a larger engine is expected to result in a rise in sales of the said cars during the final three months of the year, whereas would-be buyers of small cars or eco-cars are expected to make their purchase at the beginning of next year.