Amorn upbeat on recovery
Amorn Group, a car distributor and auto service provider, expects its sales to recover this year on a growing economy and new business units.
Wannapa Tangbanyong, chairman of the executive board, said the group became a new dealer for Subaru last year, securing a licence from Tan Chong International Ltd, the authorised distributor and importer of the Japanese brand.
In the fourth quarter of last year, Amorn added automotive insurance broking to its business portfolio, with full operations due this year.
Subaru reported sales in Thailand last year of 3,318 cars, up 25.6%, mainly the Malaysia-made XV sport-utility vehicles (SUVs). Since February last year, its assembly plant in Malaysia has also produced the Forester SUV, making the retail price of Subaru SUVs more competitive in Asean.
Amorn sold 50 Subaru cars last year, earning 55 million baht worth of insurance premiums. The group this year expects its Subaru sales to reach 200 units, with insurance premiums worth 500 million baht, pushing total revenue to grow 15% this year to 2.3 billion.
The group reported that its total revenue fell 33% last year to 2 billion baht. Lower sales were mainly due to Thailand’s overall sluggish automotive market and the narrower price gap between new and used luxury cars.
The group sold 100 used cars last year, down by 10%. The used-car business accounted for 15% of the group’s revenue.
“We are feeling upbeat about the sales prospects of Subaru and insurance premium earnings this year,” she said, adding its insurance broking business is also intended to support the group’s car distribution business.
Founded in 1966 by Ms Wannapa’s father, Amorn Tangbanyong, Amorn Group started out as Benz Amorn Ratchada Co, a used-car outlet for Mercedes-Benz. AMR Auto Part and Service, formerly Amorn Care Co, was later established to offer after-sales services. It expanded into Vespas in 2011 and BMWs in 2014.
The group now has seven firms under its umbrella, including Subaru cars, an insurance brokerage and a TV production house.
Ms Wannapa said the group’s core business is new car dealerships for three brands: BMW, Vespa and Subaru. Sales from the three brands are expected to make up for 60% of total revenue this year, up from 50% last year.
Ms Wannapa, who is also in charge of Amorn Prestige Co, an authorised dealer of new BMWs, said BMW sales are expected to grow by 16% this year, with Vespa’s sales estimated at 300 units, up 10% from the previous year.