07 Jan 2019
January 7, 2019 – GL’s Cambodia subsidiary (GLF) partners with Bajaj dealers in Cambodia to expand the three-wheeler market. GLF, which already is the exclusive third-party financer for Honda motorcycles in Cambodia, continues to expand in this rapidly growing market.
Mr. Tatsuya Konoshita, Chief Executive Officer of Group Lease Public Company Limited, announced today that GL Finance (GLF), GL’s subsidiary in Cambodia, reached an agreement with Bajaj dealers in Cambodia. The agreement allows GLF to finance three-wheeler vehicles and covers both new and pre-owned vehicles. Previously in October 2018, GL in Myanmar announced a partnership with Bajaj’s Myanmar distributor to work together on three-wheeler vehicles, which has already resulted in 130 contracts from only 2 dealers. GL in Myanmar plans to expand to additional dealers this year.
“This partnership builds upon to 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. We will continue to grow and meet our mission of providing innovative finance products to emerging entrepreneurs to improve their economic development” Konoshita said.
Mr. Riki Ishigami, Director and CEO of GLF, explained 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 THB 800 per day while their daily finance expense to GLF would only be about THB 150. The best way for us to tap into this growing market and serve our customers better is to partner with dealers of an established three-wheeler producer like Bajaj. Bajaj in Cambodia already has 22 dealers which sell roughly 2,000 tuk-tuks a month at an average price of THB 110,000 to 120,000 and with GL and Bajaj working together, we expect even further growth.”
Bajaj, originally from India, is the world’s largest producer of three-wheelers at roughly 1 million per year. They have a presence in 36 countries and a market share of 97% of three-wheelers in ASEAN. Bajaj in Cambodia has sales exceeding 2,000 per month and continues to grow.