Thailand's auto leasing market to keep growing in 2012

BANGKOK, January 10 (TNA) - The Kasikorn Research Centre (KRC) has projected that Thailand's auto leasing market in 2012 will continue to expand, thanks to the government's policy on tax rebate for first-time car buyers and the rebound of the country's post-flood auto industry. The Bangkok-based research firm acknowledged, although a worst flooding crisis in Thailand late last year has directly affected the domestic auto industry, related industries, including the auto leasing business, have limitedly been affected in terms of a slowdown of only their new customers sections; while their existing customers bases remain large and promising. The leading private think tank explained despite last year's flooding crisis, the domestic auto leasing business will continue to regularly earn from existing leasing contracts; while the government's tax rebate plan for the first-time car buyers, effective until the of 2555, will also boost the domestic auto leasing market. According to the KRC, apart from the government's tax rebate for first-time car buyers, other positive factors to help stimulate new automobile purchases and leasing business on the domestic market include favourable domestic interest rates. The Thai private research firm assessed that total debt of the domestic leasing business will stand at 770-800 billion baht this year, a 26-30 per cent year-on-year increase, based on a projection that Thailand's total automobile sale in 2012 will rise from last year by 925,000-965,000 units; while a six-month moratorium for flood-affected customers will also delay overall debt repayment to the local auto leasing business by some 5 billion baht. (TNA)