SET-listed digital finance firm Group Lease Public Company Limited (GL) is forecasting a major boost to its new high potential business in untapped Myanmar through a new partnership with HONDA NCX, the exclusive distributer of HONDA motorcycle in Myanmar, that will significantly increase the sales of GL’s financial services via High Growth Dealers network of 100 places now spread out nationwide in Myanmar.
GL-AMMK Company Limited (GL-AMMK, GL’s Joint Venture subsidiary 57%-owned subsidiary in Myanmar with AMK group which is one of biggest retail products distributer in Myanmar) is newly established in February 2017th. “As a result, the new exclusive agreements, GL will be only 1 Finance company which could stay in the Honda’s Authorized dealers of New and 2nd hand motorcycles whole country of Myanmar. This will immensely boost up our marketing and sales expansion,” stated Mitsuji Konoshita, Chairman and CEO of GL.
Myanmar is an untapped High growth market for the GL Group. Mr. Kaname Hashimoto Managing Director of GL-AMMK mentioned. ‘Now the market size of Myanmar of new motorcycle is around 1 million unit of annual sales. Honda has only 10% share (around 100 thousand unit) currently, but its sales is growing more than 30% every year. Honda will be able to increase their market share to 60% at least within 10 years as we experience in all other ASEAN countries, Honda is outperformed always. I believe with confident.’
Mr. Hashimoto expected that the number of the dealer of Honda now are 103 now and it will increase rapidly. It was just early February to start its operation of GL- AMMK, and it had already opened test POS at 14 places. ‘We are opening very fast and will cover all of HONDA 103 dealers within 6 months.’
Calling it a win-win partnership, GL CEO Mitsuji Konoshita said: “There are 3 factors which make us so confident on our business expansion in Myanmar. 1 the market is now expanding rapidly, 2, Honda Market share will increase sharply since its quality of the motorcycles are far better than the Chinese motorcycles which are majority in the market now, 3, The competitors are still not expand yet since Myanmar is the place which development happened very recently.’
The GL-AMMK MD signed a term sheet with Mr.Myint Oo, Managing Director of NCX Myanmar Company Limited, in Yangon on March 23rd 2017 and the new partnership will become effective from April 2017.
GLF also enjoys an exclusive and matured partnership with HONDA NCX already 5 years in Cambodia with expanding its partnership not only in Motorcycle but also several products as well.
NCX Myanmar belongs to same group of Honda NCX who also have NCX in Cambodia and Laos. And they are all business partners of GL. AMK group is one of biggest retail products distributer in Myanmar and business partner of GL in Myanmar. This agreement execution shows strong and huge business partnership spreading throughout Asia developed by GL and becomes strategic move for expansion out of Asia.