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- Category: ยานยนต์
- Published: Sunday, 15 May 2016 15:32
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ECL joins PFS the giant leasing in Japan Taking up recovery of used car market and aim for big player within 3 years
EASTERN COMMERCIAL LEASING PUBLIC CO., LTD (ECL) has started offensive play in car leasing market by announcement an investment share with PREMIUM FINANCIAL SERVICES (PFS), the giant leasing from Japan, aiming to be the leader of car leasing transformation in Thailand history. It lets PFS to hold up more share wishing to employ business strength and strong capital to prepare for defensive plan for being leader in Thailand market within 3 years. Main point is that a trend of used car sales is growing high. For PFS, it has passed on technology and knowhow for extended warranty of used car to improve trading standard to be higher quality also continue plan to expand to neighbor countries in future.
Mr.Danucha Veerapong, The Chairman of the Executive Committee of EASTERN COMMERCIAL LEASING PUBLIC., CO LTD or ECL has said about the business plan to start defensive action for car leasing business. After PFS and ECL has joined for feasibility study about car leasing business in Thailand in March 2014. There is good progress of cooperation and now we are ready to start defensive plan by using our strength to expand car leasing market in Thailand.
According to the plan, or company has got approval to increase authorized capital from 892.16million to 1.095 billion THB which PFS share is not over 25.50%. Initially, when ECL received capital from stock investment it will be paid for current loan. Once company has expand used car leasing business and maintain current leasing business we will also expand to Extended warranty for car spare part warranty business which PFS is expert and increase capital in future. According to this ECL will withdraw money from financial institution as next step depending on business size in future.
Currently, we is operating car leasing business for new and used car with experienced and professional team with nationwide network and also being listed company in Thailand stock exchange for 12 years. Until in year 2014, ECL started business joint with PFS which was sharing used car leasing knowhow in the beginning. Then there is cooperation on business development to gain strength and develop new products such as car insurance etc.
With a new plan for car leasing market, we are confident that there will be a big change. Normally, used car leasing has expanded in local business but in future, there will be an upgrade brand from local to modern trade in order to improve quality and increase reliability by adding marketing value which PFS is expert on this strategy in Japan and we believe that this will create big change in this market.
“Resulting from slow down economy, increasing of household debt, finance company is strict on car leasing decision and also 5-10% raising tax for new car these impact to consumer buying decision a brand new car and it brings sales volume down previously. Beside, for used car it has been growing better therefore the sales volume of used car sales in this year has a chance to increase up to 20% or 2 million units which it is our opportunity” Mr. Danucha said.
From this opportunity, we are confident that with this business plan will lead ECL to gain market share over 20% within 3 years and it will bring ECL to be leader in this business. With PFS capability, ECL might plan for business expansion to neighbor country in future. Moreover, selling capital share to PFS will help to expand used car leasing customer base, developing spare part warranty business and other business which promote business growth in future.
Mr.Yohichi Shibata, Representative Director of PREMIUM FINANCIAL SERVICES or PFS said that PFS has increased capital with ECL from 25% to 25.50% because they foresee growing capability of used car business in Thailand. Moreover, Thailand is AEC center which is a good opportunity to grow and expand used car market. It is also bring modern trade system which is warranty service that currently operating in Japan, this will upgrade used car market by increasing reliability to customer for buying used car that in the past it has been warranted for brand new car only.
PREMIUM FINANCIAL SERVICES has registered in Japan and operating car leasing business and spare part warranty for used car. There is 30,100 dealers across Japan which obtains market share 10% in modern trade of car leasing business.
