Motorcycle hire-purchase financier Group Lease (GL) is expanding in Cambodia via its subsidiary GLF, which is partnering with Bajaj dealers in the country. GLF is already the exclusive third-party financer for Honda motorcycles in Cambodia.
Tatsuya Konoshita, CEO of Group Lease Public Co Ltd, yesterday announced the agreement between GLF and Bajaj dealers. It allows GLF to finance both new and pre-owned three-wheeler vehicles.
Previously in October 2018, GL in Myanmar announced a partnership with Bajaj’s Myanmar distributor to work together on three-wheelers. It has already resulted in 130 contracts from only two dealers. GL in Myanmar plans to expand to additional dealers this year. “This partnership builds upon the success we have had with Bajaj in Myanmar, and shows our ability to try a new product in one market and use that experience to launch that product in our other markets as we continue to expand our network throughout Asean,” said Konoshita.
“We will continue to grow and meet our mission of providing innovative finance products to emerging entrepreneurs to improve their economic development.”
Riki Ishigami, GLF’s director and CEO, noted that “three-wheel demand in Cambodia is very high. Tuk-tuks are an increasingly common sight in Phnom Penh and throughout Cambodia as they allow groups and individuals to move around affordably and quickly.
“These GLF financed tuk-tuks will allow emerging entrepreneurs to earn approximately Bt800 per day while their daily finance expense to GLF would only be about Bt150.”
Ishigami said a partnership with an established three-wheeler producer such as Bajaj was the best way for GLF to tap the growing market and better serve their customers.
Bajaj has 22 dealers Cambodia, selling about 2,000 tuk-tuks monthly for an average price of Bt110,00 to Bt120,000, he said.
“And with GL and Bajaj working together, we expect even further growth.”
Bajaj, originally from India, is the world’s largest manufacturer of three-wheelers at roughly 1 million per year. They have a presence in 36 countries and a 97 per cent market share for three-wheelers in Asean.