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AUTOMOBILE RENTALS
SANTAN SANTIVIMOLNAT
Soaring demand for alternative-fuel vehicles has led Krungthai Car Rent and Lease Plc (KCAR) to expand its fleet by more than 500 vehicles that can run on gasohol or compressed natural gas (CNG).
Pithep Chantarasereekul, managing director of the SET-listed car rental firm, said the company had spent about 400 million baht to acquire Chevrolet Optra CNG cars and E20-compliant Honda Jazz and Toyota Altis models.
''Since our customers have made such strong requests, we decided to fulfill their needs for cost saving to deal with rising fuel prices,'' he said.
The move would also increase awareness of environmental protection within the car rental industry, he added.
KCAR operates the country's largest rental fleet with more than 5,100 vehicles.
The company plans to buy 200 to 300 CNG-fuelled vehicles this year, starting with the 50 Optra cars, with a budget of up to 1.5 billion baht.
The total market value of the car rental business is estimated at 11 billion baht.
Mr Pithep said the car rental industry had a lot of potential this year, especially in the corporate market, where companies can save costs, particularly in terms of hassle-free maintenance and lower total cost of ownership.
''At KCAR, the operating lease business accounts for 95% while short-term rentals contribute only 5% of our total revenue,'' he said.
This year, the company projects 1.3 billion baht in revenue, a 15% increase from the previous year and higher than the estimated market growth of 5%.
In the first quarter of this year, the company had a net profit of 53.1 million baht, down slightly from 57.4 million a year earlier.
Mr Pithep said the strategy this year was to focus on expanding its base to long- and short-term renters in general in addition to premium customers. However, he said service quality would not be compromised.
''We are not waging a price war in this situation except for seasonal promotions designed to attract prospective customers or to match the needs of short-term renters,'' he said.
KCAR shares closed yesterday on the Stock Exchange of Thailand at 5.45 baht, down 10 satang, in trade worth 210,000 baht.
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