Bangkok--12 Mar--BrandComm Consultants Plan to add 1,500 vehicles into fleet underway despite fierce competition expected for 2008 Krungthai Car Rent and Lease Plc (KCAR) has reported operating income of more than 1.2 billion baht for 2007, an increase of 22% over 2006. The reported results include net profit of more than 200 million baht. Though the car rental industry is likely to face fiercer competition this year, KCAR has set growth target between 10-15% and will focus mainly on fleet and service quality improvements as a strategic approach to expanding customer base and boosting revenue. To accommodate the increasing demand in all segments, the company plans to add 1,500 new vehicles worth about 1.2 billion baht into its existing fleet. Krungthai Car Rent and Lease Plc managing director, Mr. Pithep Chantarasereekul said, “Our 2007 performance does not go behind our expectation in spite of being affected by political uncertainties, economic slowdown and high competition caused by intensifying price war in the car rental industry. The operating income of 2007 has surged 22% to 1.211 billion baht, and net profit has improved 15% to 212.9 million baht. In terms of market share, we rank third grabbing 10% of the total market value” KCAR currently has about 500 customers, of which 75% comes from the private sector and 25% from state enterprises and government agencies. Out of these, 90% of existing customers apply for long-term operating lease, while another 10% opts for short-term rent. Giving his view on market situation, Mr. Pithep said, “The car rental industry last year experienced unprecedented price war and higher competition spurred by increasing numbers of car rental companies in the market. However, only 10 companies are considered as our major competitors, while nearly 100 others are offering merely short-term services.” “The car rental market this year is expected to expand moderately as determined by new car sales. Still, customers are likely to rely more on car rental services as they are seeking for new models with hi-tech features. They also need more flexible options such as three or five-year rental agreement that enables effective budget control without shouldering rising maintenance costs whether on short or long-term basis,” added Mr. Pithep. He also noted that the much-talk-about case of car scam also had an influence on customer decision, choosing car rental services only from highly reliable providers to prevent themselves from being involved in any fraudulent businesses. This could help stimulating the authorised car rental market to some degree. “Our business strategy for 2008 is focused mainly on fleet improvement and service quality in stead of offering discounted prices,” said KCAR deputy managing director, Mr. Pichit Chantarasereekul. “We operate a large rental fleet of 4,900 vehicles comprising of passenger cars (2,450), pick-ups and vans, in addition to the industry’s largest replacement fleet of over 200 vehicles.” He continued, “With more than 500 service centers being operated by our business partners Shell Auto Serve and B-Quick nationwide, along with our 24-hour standby maintenance units, customers can be sure to receive an exceptional level of customer service from KCAR.” “Moreover, our fleet expansion plan worth more than 1.2 billion baht in addition to one billion baht spent last year will ensure adequate supply of vehicles for our target customers, including Japanese visitors and expatriates who will be increasingly focused this year.” “This year’s growth projection is 10-15%, which goes beyond the market average. However, we will concentrate on growing reputation, strengthening reliability and mounting customer satisfaction rather than enlarging the market share. This can be achieved through many competitive advantages including our 25 years of proven expertise in the car rental industry and our largest replacement fleet in Thailand,” said Mr. Pithep. “Additionally, our integrated rental business model makes things smooth and provides superior power of negotiation. It involves everything from acquisition of cars especially Toyota and Nissan cars from partnering dealers, to discharging used vehicles to Toyota Krungthai Used Cars. This enables fast switching to new models and ensures customers a higher level of variety as well as quality and safety of cars they use.” For more information, please contact: BrandComm Consultants Co., Ltd. Khun Pailin Buranamittranond Khun Saovarin Thongthad Tel. 02 645 0171 (32 lines) Fax. 02 645 0170