DFSK expands to selling used Dongfeng vehicles

DFSK expands to selling used Dongfeng vehicles

DFSK Thailand, the maker of China’s Dongfeng vehicles, has expanded into the certified used-car market with the goal of stimulating sales and upgrading the resale prices of Dongfeng cars.

Operating as Dongfeng Yes, DFSK expects to provide leasing worth 40 million baht for about 300 certified used cars next year, managing director Pitaya Tanadamrongsak said.

The company yesterday teamed up with Kasikorn Leasing, a subsidiary of Kasikornbank, to provide hire purchase for certified used and new vehicles, with down payments of 20-25% and interest of 2-3% a year.

There are more than 10,000 Dongfeng cars in Thailand, but they generally fetch relatively low prices on the used-car market.

Dongfeng’s new cars sell for 308,000 to 340,000 baht.

The price gap between new and certified used cars will be 150,000 to 200,000 baht.

DFSK started operating in 2008 as an authorised distributor for Dongfeng.

In 2010, DFSK Motors, a top-three car maker in China with annual production capacity of 3 million vehicles, built a 100-million-baht factory in Chachoengsao province.

DFSK Thailand in August 2013 announced it would increase annual production of small trucks and minivans by 60% to 8,000 this year.

It is gearing up to export small trucks to Indochina to offset Thailand’s tepid commercial vehicle market.

The company was recently authorised to export small trucks assembled in Thailand to Laos, Vietnam, Myanmar and Cambodia.

Small trucks available in Laos are mostly Chinese brands, with 7,000 to 8,000 vehicles sold annually there.

Under the Asean Free Trade Area, the customs duty for vehicles imported from Thailand is waived, making retail prices in Laos more competitive.

DFSK expects to sell 2,300 vehicles in Thailand this year, down from 2,500 last year.

Up to 90% of DFSK’s sales are of small trucks.

Mr Pitaya expects overall small-truck sales next year will grow by 10% on the back of public investment.

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