bangkokpost.com wrote:Peugeot to be relaunched in Thai market
Distributor aims to double sales in a year
SANTAN SANTIVIMOLNAT
Peugeot's new distributor is relaunching French automaker in Thailand after its sales slumped during three erratic decades under the Leenutaphong family's Yontrakit Group. Yontrakit Automobiles Co's investment to expand the business will include building a new assembly plant, developing the sales network and enlarging the marketing budget. Non-financial support from Peugeot is also expected to lift consumer confidence in its products.
Yontrakit Automobiles now expects to double Peugeot's Thai car sales every year, building the market with both imported and locally built vehicles.
For many years the Yontrakit Group has been the authorised importer and distributor of Audi and Volkswagen cars from Germany, France's Citroen and Peugeot, the Czech Republic's Skoda and Spain's Seat. It recently also took on South Korea's Kia and Japan's Mitsuoka.
Peugeot cars are now officially imported by European Motor Cars Co and distributed by Yontrakit Automobiles Co _ a Yontrakit Group spinoff created by a restructuring early this year to demarcate the brands managed by each family member.
After the restructuring, the Peugeot brand was taken over by Ponkrit Leenutaphong and his brother Phasupong. Both are sons of Mr Attaphong, who founded the Yontrakit Group with his brother Attaphorn.
Mr Ponkrit, chairman of European Motor Cars and Yontrakit Automobiles, said Peugeot was now gearing up to compete in the local automotive market after he and his brother took charge of the brand.
Mr Ponkrit said he intends to double sales every year, starting this year by expanding sales to 200 units. He forecast sales rising to 300-500 units over the next three years.
While Peugeot was under the Yontrakit Group, locally built 406 sedans provided most of monthly sales of 300 to 400 units _ with other sales supplied by around 10 imported models including sedans, convertibles, mini multi-purpose vehicles and vans.
However, 10 years ago the group stopped making the 406 and switched to only importing Peugeot cars.
''After looking at Peugeot's market before it came under us, the sales are low compared with those achieved several years before,'' said Mr Ponkrit. ''So we have decided to invest in several new projects for future growth.''
One project is to construct an assembly plant at Lat Krabang in Bangkok _ at a cost of 100 million baht _ to build Peugeot Expert 11-seat vans from semi-knocked-down (SKD) kits.
The Expert will be the first locally built model and the plant will assemble about 200 vans each year. They will be sold in the domestic market and also shipped to Malaysia and Indonesia to take advantage of low tariffs under the Asean free trade area (Afta). If the Expert proves popular in these markets, other locally built models will follow later.
Expert vans are currently available in the Thai market but are all imported from France.
Another major project is building a new head office and integrated service centre at Soi Thong Lo in Bangkok _ at a cost of 700 million baht _ as part of developing Peugeot's sales network. The new facilities are now under construction are expected to be opened early next year.
Currently, Peugeot's head office is at Sukhapiban 3 in Bangkok and the company has a branch on Rarm Intra Road.
Showrooms and service centres in Lampang and Chiang Mai are also under construction and are due for completion by the end of this year. Additional branches in locations including Udon Thani, Phitsanulok and Phuket are to be established later.
All Peugeot centres will adhere to the company's global ''Blue Box'' template, with its uniform look and standards. This covers original parts and services, Peugeot Planet System (PPS) diagnostic equipment and a 24-hour call centre.
''Previously, Peugeot cars shared showrooms with other Yontrakit Group brands,'' said Mr Ponkrit. ''But the exclusive centres will boost its brand image and give easier access to its customers.''
Peugeot has no equity participation in developments in the Thai market. However, it is supporting its distributor in operating systems, especially software, and it will work with other Peugeot producers in the region on co-ordinating exports.
