ALD, Mitsubishi HC Capital and Bangkok Mitsubishi HC Capital Co, a group company of Mitsubishi HC Capital in Thailand, have entered into an agreement to establish a joint venture (JV) company in Thailand.
The JV proposes to establish a multi-brand, full-service operational leasing and fleet management with related mobility products for corporate clients.
Thailand represents the second joint venture between Mitsubishi HC Capital and ALD, following the launch in 2020 of ALD MHC Mobility Services Malaysia in Malaysia, as part of a strategy to jointly build a mobility business platform in the Association of Southeast Asian Nations (ASEAN).
The current auto leasing portfolio of Bangkok Mitsubishi HC Capital Co will be transferred to the joint venture company and the company would aim to provide related high-quality mobility services by integrating the acquired knowledge and experiences of local business of Bangkok Mitsubishi HC Capital Co and the mobility business know-how and the global customer base of ALD.
The new company would aim to expand its coverage to key international clients of ALD, other multinationals and local Thai entities.
Thailand, with approximately 759,000 motor vehicles sold in 2021, is the second-largest market in ASEAN after the Republic of Indonesia. The market has recorded sales of over 760,000 units as of November 2022 and is expected to further grow in the future. Both companies recognise the strong long-term growth potential of the Thai motor vehicle market which is expected to provide attractive business opportunities for further growth.
The closing of the transaction is expected to occur in Q2 2023. All parties will work closely together to ensure a smooth transition for the current staff, clients and partners of Bangkok Mitsubishi HC Capital Co to the new company.
It is expected that both groups will follow this launch with further joint ventures over the coming years to cover the main countries in the region.
Tim Albertsen, CEO of ALD, said: “With car markets in Southeast Asia growing fast and strong global client demand expected in this region, we believe that as an early starter among our European peers, we will be able to develop successfully, as we have done in other emerging markets.”
ALD is currently present in Asia through its subsidiary in India, where it has been providing full-service leasing and fleet management services for over a decade, and the joint venture launched in 2020 with Mitsubishi HC Capital in Malaysia.
At the end of September 2022, ALD’s total fleet amounted to 1.76 million vehicles managed worldwide with an unparalleled direct presence in 43 countries.