CEO Claude Ginier said his company was studying the Thai car and motorcycle hire-purchase markets. Several officials from its parent company will participate in the study, and a decision on expanding into these areas will be made this year.

"The car and motorcycle hire-purchase market in Thailand is huge. This makes it an attractive area for us to move into. A Bank of Thailand report showed that new car sales last year was around 700,000 units, and motorcycles totalled about 200,000. This reflects the high growth potential of this business," said Ginier.

In addition, Cetelem plans an aggressive expansion of its consumer lending this year. The company has targeted new lending of Bt6 billion, which would represent a rise of 71.43 per cent over last year's Bt3.5 billion.

The company's new lending averages around Bt500 million per month, and the current uncertainty over Thailand's economic outlook is unlikely to affect the company's business. Ginier said loan growth in the first quarter of the year had been strong.

Cetelem's loan portfolio includes electric appliances, personal loans and credit cards at 53 per cent, 31 per cent and 16 per cent, respectively. The company plans to focus on the electric-appliance market, as it projects this will grow 3.5-4.5 per cent annually over the next three years.

Ginier said the company planned to expand upcountry, opening 11 branches nationwide in the next few years.

The company also recently launched its new instalment-loan product, the Cetelem Sale Finance Card, which offers a maximum payment period of 48 months, initial interest of zero per cent and a credit limit of up to five times a customer's monthly income.

Cetelem, a subsidiary of BNP Paribas Bank, is the European leader in consumer finance. It has a presence in 26 countries worldwide, with a total loan portfolio worth 35.4 billion euros (Bt1.67 trillion). This year, the company began operating in Russia, Ukraine and China.

Somruedi Banchongduang

The Nation