Renet Japan Group Inc has launched an auto leasing service in Cambodia in a bid to benefit from a growing market.
In a press release on Wednesday, ReNet Japan Group said it is a licensing company for the mobility leasing services arm of Mobility Finance Cambodia Plc, a joint venture with SBI Holdings Inc, which is engaged in internet financial services.
It said it had already obtained approval from the Ministry of Commerce.
“With the growth of the Cambodian market, the number of users who acquire cars by loan or lease is rapidly expanding, and the provision of new services is required,” the press release said.
Mobility Finance Cambodia utilises internet technology and automatic GPS tracking systems to conduct credit scoring and identify the locations of vehicles and equipment, it said.
It aims to offer the lowest level of leasing interest rates in the sector and achieve at least 1,500 leased units per year.
The firm had taken over a local leasing firm, ELIN Leasing Plc, and renamed it, in which it holds a 51 per cent stake, with SBI having the remaining 49 per cent, said NNA Japan news agency.
According to NNA, the Japanese group posted an 88.9 per cent surge in sales to 8.57 billion yen ($78.5 million) in the last fiscal year, mostly driven by the rapid business growth in Cambodia.
For business in Cambodia, it saw an over 12-fold increase in operating profit, up more than six-fold from a year earlier, financial statements show.