Suzuki gears up for hire-purchase drive

The president and CEO of Suzuki Leasing International (Thailand), Hiroyuki Kaneko, said last week the company had just been established with Bt60 million of authorised capital by Itochu Group and Suzuki Motor Corporation (Japan), which hold stakes of 70 per cent and 30 per cent, respectively.

The company will offer hire purchase for customers who buy motorcycles, except in the 14 provinces in the South where Suzuki distributors have provided hire purchase for the last five years.

"Now we have changed our strategy to do hire purchase by ourselves in the other parts of Thailand, as 80 per cent of motorbike buyers pay by instalment," Kaneko said. "We don't fix the down-payment amount as this depends on each customer. The interest rate is charged at 2 per cent a month, or 24 per cent a year. Because of high oil prices, people might not buy a car, but choose to buy a motorbike instead, so we can sell more," said Kaneko.

Suzuki Leasing chief operating officer Manop Tririthvilai said that last year his company sold 80,000 motorcycles - a 5-per-cent share of the total of 1.6 million sold last year. In the first five months of this year, the company sold 5,900 motorcycles, for a 4-per-cent share.

"Suzuki now has 30 direct dealers nationwide and the number will increase. We will also send 25 of our staff to stay with the big dealers to give information and check the financial status of customers before loan approval," said Manop.

The company allows customers to pay by instalment for a maximum of 36 months via Suzuki dealers and Kasikornbank, Siam Commercial Bank and Bank of Ayudhya branches.