KCar picking up revenue expectations
SET-listed automobile services provider Krungthai Car Rent & Lease (KCar) expects its revenue to grow 5% this year to 2.1 billion baht boosted by higher demand for car rental and used cars amid the recovering economy.
According to newly-appointed managing director Pichit Chantarasereekul, the overall car rental market sentiment is improving in line with the country’s economic condition, with the market expected to grow by 5% this year from 60 billion baht last year.
Founded in 1992, KCar now runs two business units — car rental provision and used-car distribution.
KCar had a car rental fleet at 7,600 as of last year, up from 6,900 cars in 2015, with total car rental assets increasing by 10% to 4 billion baht last year.
Car rental accounts for 58.4% of the company’s revenue, with used car sales comprising the rest.
KCar provides vehicles for rent to general consumers and organisations, such as public agencies, state enterprises and private companies.
It offers operating lease contracts, which provide rental services of 1-5 years, and short-term rentals contracts, which offers rental services for periods of under one year.
Rental vehicles include economy, compact, intermediate and sport utility vehicles, pickup trucks and 11-seater vans.
It also provides customer services, a 24-hour call centre, repair and maintenance, car i nsurance and t hirdparty insurance.
Last year, KCar posted revenue of 2 billion baht, a rise of 2.9%, with net profit surging 62.5% to 331 million baht thanks to successful controls of operating costs.
Mr Pichit expects the company’s revenues to grow 5-10% annually in 2018 and 2019, to be driven mainly by the used-car business, which operates under the Toyota Sure brand.
KCAR expects to sell 2,400 used cars this year, up 6.5% from 2,254 last year.
The company aims to open KCar’s Toyota Sure fourth branch in Bangkok in the last quarter of this year, with an investment of 40 million baht.
KCAR shares closed yesterday on the Stock Exchange of Thailand at 17.90 baht, up 70 satang, in trade worth with 107 million baht.