PFS, a leading Japanese “auto finance” company, allies with Eastern Commercial Leasing to penetrate into auto finance market in Thailand in anticipation of expansion after AEC
PFS, a leadingJapanese automobile finance company, is confident in Thailand’s economy and stability as Southeast Asia hub. It recently allies with Eastern Commercial Leasing (ECL), a leading auto finance provider in Thailand to penetrate into the country’s auto finance and services market, as well as to prepare for the expansion of AEC after the volume of new car sales in 2013 reached 1.33 million cars. Thailand is considered the biggest market in Southeast Asia region.
Mr. YohichiShibata, CEO of Premium Financial Services Co., Ltd.(PFS) headquartered in Tokyo, Japan, stated that Japanese auto manufacturers have been leading Thailand’s auto market with total market share of more than 90% while growth direction of the Japanese companies remains positive. Thailand’s overall auto market still has potential to grow, as indicated from the volume of new car sales of as high as 1.33 million cars. With a growing auto sale volume, the distribution of used cars increases accordingly. As such, PFS sees an opportunity to open up new business in Thailand and has recently chosen Eastern Commercial Leasing Plc. (ECL) to jointly expand finance provision business for used cars in Thailand. This is due to ECL’s experiences and extensive network coupled with its listing status on the Stock Exchange of Thailand bourse since 2004. This business alliance is considered a big step towards the opening of new market and new product development using know-how in hire purchase of PFS in Japan which can be adopted to Thailand and the Southeast Asia region as well.
PFS engages in automobile finance business and warranty towards second hand automobile parts through its 23,000 dealership network throughout Japan. In March 2013, the shareholder of PFS is an investment fund managed and operated by a wholly owned subsidiary of a major trading company Marubeni Corporation. PFS has firmed their policy to enter into sales finance businesses overseas, mainly in South East Asia where high economic growth is anticipated and economic presence is growing. This alliance is realized to expand our business field to South East Asia at an early stage by absorbing the know-how of hire purchase finance in Thailand.
“Initially, PFS plans to enter into a business alliance agreement to expand business through ECL’s network. Main agenda of the business alliance include an exchange of hire purchase finance know-how for secondhand cars, strengthening of credit through Japanese companies to Thailand, support of business cooperation and development to strengthen the business, and support of new business and product development such as automobile guarantee, etc. This also opens up the opportunity to establish a firm relationship with ECL for business in the future. This alliance is well accomplished with the support from financial advisors, i.e. AOZORA Bank Limited, a Japanese bank, and Sage Capital Limited, Thai financial advisor”, Mr. Shibata said.
Mr. DanuchaVerapong, CEO of Eastern Commercial Leasing Plc. or ECL, added that the Company, at present, has actively engaged in expanding its finance business for both new and second hand automobiles, holding abundant experience and professional resources with extensive network. It has also listed on the Stock Exchange of Thailand bourse for more than ten years. Last year, the Company’s revenues increased by 12% from the previous year to THB 227 million with the net profit of THB 46 million, or an increase of 22% from that in 2012.
“The Company is confident that this alliance of both companies will be able to utilize know-how and concept of major finance leader in Japan to develop service styles and to create network to support the expansion of auto finance business of the Company as well as second-hand finance market in Thailand. This is in line with ECL’s plan in the development of auto finance and other new businesses that can support the expansion of both domestic and overseas business. This would also allow for more stability and sustainability to business expansion”, Mr. Danucha announced.
