Firms team up to launch Fixman used-car repair

SET-listed Eastern Commercial Leasing Plc (ECL) has partnered with Japan’s Premium Financial Services Co (PFS) on the Fixman car repair network to support used-car owners.

Chief executive Danucha Verapong said ECL’s business relationship with PFS, a provider of car credit finance services, dates back to 2014, when both offered a warranty service for used-car buyers.

PFS became a shareholder of ECL in 2016 and now owns 30.49%.

Mr Danucha said the companies last year set up a new subsidiary, Eastern Premium Service Co, with registered capital of 40 million baht to operate Fixman Auto Service. ECL owns 51% and PFS 49%.

Mr Danucha said ECL wants to fulfil customer demand for after-sale services for used cars, a business the country lacks.

“ECL is a financial provider for used-car buyers in the central and eastern parts of Thailand, so we will cooperate with 600 partner dealers to provide certified services with Fixman,” he said. “Each dealer can offer Fixman’s services to its customers, while used cars under ECL’s lending will be included in after-sale services.”

With auto repair expertise from PFS, which runs this type of business in Japan as well, ECL believes in the quality of Fixman to service used cars, mainly Japanese brands, Mr Danucha said.

ECL built the first four Fixman locations — Nawamin, Kanchanaphisek, Sukhumvit-Bearing and Sri Racha — at a total cost of 12 million baht. The Nawamin shop is in operation, while the other three are scheduled to open by the first quarter of 2018.

“The size of a Fixman shop is 150-160 square metres, and ECL plans to expand to six wholly owned shops by the end of next year,” Mr Danucha said. “Moreover, ECL will offer Fixman’s franchise to other investors next year with a 3-million-baht budget per shop.”

The auto repair business can realise a margin of about 30% because of the large number of vehicles in the country, he said.

ECL expects its outstanding portfolio to reach 5 billion baht this year, up from 2.8 billion last year. Half of ECL’s portfolio comes from used cars, while lending for big bikes accounts for 40% and lending for big trucks the rest.

At present, ECL provides hire purchase for 20,000-30,000 vehicles.

Mr Danucha said listed hire purchase firms have performed well this year because of better sentiment in the automotive market. ECL also has seen growth from interest and insurance revenue.

Mr Danucha said ECL should exceed 400 million baht in revenue in 2017 after reporting revenue of 215.16 million baht and a net profit of 65.69 million baht in the first half.

ECL hopes to have a 10-billion-baht loan portfolio within three years.

ECL shares closed yesterday on the Stock Exchange of Thailand at 4.12 baht, up two satang, in trade worth 52.3 million baht.