Kcar rentals thrive in economic slowdown
Krungthai Car Rent and Lease (Kcar)'s total revenue is expected to grow by 20 per cent to Bt1.1 billion this year thanks to rising corporate clients as business owners and managers want to save costs during the country's economic slowdown.
Managing director Pithep Chantarasereekul said that the firm aimed to increase its market share by 30 to 40 per cent in the next three to five years. The company is planning to issue bonds to raise funds from the market to support its business expansion. The money will be spent to buy more new rental cars to serve the rising demand of clients. The economic slowdown is advantageous for the car rental business. Many companies and even individuals have shifted to leasing cars instead of buying them to save maintenance and operating costs. Last year, the firm generated income of Bt925 million. So far, the company's market share is about 10 per cent, ranking among the top three largest car-rental enterprises among hundreds of players in Thailand. "We strongly believe that the business has plenty of room to grow, on average at more than 10 per cent a year. The company is speeding up operations to upgrade our positioning," he said. Kcar now manages 4,200 cars for rent, increasing to 5,000 this year. Pithep said that the company would continue to concentrate on corporate clients. The company has been operating its car rental business for 26 years. It also created business integration through strategic partners, including the local dealerships of Toyota and Nissan - Krungthai Toyota and Krungthai Nissan - and a used-car sales business called Toyota Krungthai Used Car. It offers passengers cars, vans and pick-up trucks for more than 400 corporate clients. To reach its revenue target and beat other competitors, Pithep said his firm would increase the number of sales agents from 20 to 50 this year. The firm will improve its relationship with customers by providing more road assistance in case rental cars break down. The company manages 500 service points countrywide. In the service business, customer relationship is one of the most important factors. The firm is focusing on improving its relationship with clients and promoting brand recognition, said Pithep. "We are aware that we don't have enough brand recognition. Moreover, a large portion of the public is not familiar with the idea of leasing cars. In fact, leasing is easier than owning a car because the company takes responsibility for all the maintenance work," he said. The firm will focus on quality service to maintain its customer base and will also reach out to new groups, added Pithep.
Petchanet Pratruangkrai The Nation
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