Renewal of Exclusive Agreement with HONDA NCX to Boost HONDA's Sales in Cambodia
05 Jul 2017
The First and Biggest Financial Lease company in Cambodia GL FINANCE Plc. (GLF), a subsidiary of Group Lease PCL listed on the Stock Exchange of Thailand, renews its exclusive agreement with N.C.X. CO., LTD (Honda NCX), the leading Honda motorcycle assembler and distributor in Cambodia, marking another milestone for a stronger exclusive partnership and forecasting increased new Honda motorcycle sales via GLF’s financial lease services on top of already strong Honda motorcycle cash sales . This new Exclusive Agreement follows the first exclusive agreement between GLF and Honda NCX officially executed in 2012.
Digital Finance Company GLF was established in Cambodia in 2012 and became the First Financial Lease Company to provide financial leasing services in the country and was also the first overseas subsidiary of GL Group. Subsequently, GLF had expanded its presence to all Honda dealers all over Cambodia and now dominates the rural market. Under the exclusive partnership with Honda NCX, GLF is the only finance company that provides finance services on Honda motorcycles to Honda NCX’s customers at any Honda dealership in the country. GLF will continue to work closely with Honda NCX ranging from strategic setting to co-marketing in order to enhance mutual growth.
Having its services available at throughout the country through its more than 5,000 GL own Agent Dealers and using the most cutting-edge GL Digital Finance Application, GLF aims to boost its market shares, expands its portfolio upon this new Exclusive Agreement and continue to provide better access to financial leasing services to all Cambodian people, regardless of their occupation. GLF confidently predicts both growth in Honda motorcycles sales and grow in the percent of those sales financed through leasing. Honda has seen exponential growth which shows no sign of slowing and is bringing Honda’s market share in line with other ASEAN markets and the motorcycle market overall has seen a relatively low rate of penetration and as motorcycles ownership increases, Honda is positioned with GLF to dominate the market.
HONDA NCX, with an industry market share of 95%, is the market leader of Motorcycle industry in Cambodia, exclusively providing all Honda motorcycles to the Cambodian people. Honda motorcycle sales are expanding from an estimated 300,000 new sales in 2017 to more than 500,000 sales annually within 5 years, due in part by Honda’s strong financial support from GLF.
Officially signed on 26th June 2017 between GLF and Honda NCX, the new exclusive partnership is expected to energize and reinforce the strong relationship between Honda NCX and not only GLF but also GL group for beneficially mutual business growth. This agreement execution marks a robust relationship between GL and Honda NCX in Cambodia, Laos and Myanmar with huge expectation of potential GL’s regional uplift beyond Asia. GL Group has been expanding rapidly in the last few years and is currently operating in 7 Asian countries including Exclusive Agreement with HONDA NCX in Myanmar.