Amorn Group to expand
Amorn Group, a car distributor and auto service provider, remains in expansion mode this year despite the cloudy domestic market.
Chief executive Wannapa Tangbanyong said the group will start distributing Subaru cars next month on top of two existing brands, BMW cars and Vespa scooters.
“We plan to cover all segments from the mass market to the luxury level to expand our customer base,” she said.
Amorn Group has become a new dealer for Subaru in Thailand, securing a licence from Tan Chong International Ltd, the authorised distributor and importer of the Japanese brand.
Subaru reported sales in Thailand last year of 2,641 cars, up 34.3%, mainly driven by the Malaysia-made XV sport-utility vehicle (SUV).
Since February, the assembly plant in Malaysia also produces the Forester SUV, making the retail price of Subaru SUVs more competitive in Asean.
According to Ms Wannapa, Amorn Group has spent around 10 million baht to set up the Subaru outlet on Ratchadaphisek Road where the group runs all automotive business on a six-rai plot.
Founded in 1966 by Ms Wannapa’s father, Amorn Tangbanyong, Amorn Group started with Benz Amorn Ratchada Co, a used-car outlet for Mercedes-Benz. Amorn Care Co was later established to
offer after-sales services for the group.
The group expanded into Vespas in 2011 and BMWs in 2014.
Ms Wannapa, who is in charge of Amorn Prestige Co, an authorised dealer of new BMWs , said the company spent 300 million baht on a showroom and service centre.
At present, Amorn Prestige accounts for 7% of overall sales of BMW in Thailand.
BMW sales from January to April totalled 2,180 cars, down 10% from the same period last year.
In 2015, BMW sold 7,751 units, up 4% from a year earlier.
“I still expect BMW sales to pick up in the second half to meet the 10% growth target this year,” she said.
In a move to cope with the recovery of the domestic market and stimulate sales, Amorn Prestige this month will open a 28-million-baht showroom at Future Park Rangsit.
According to Ms Wannapa, Amorn Group also aims to add BMW Motorrad to its portfolio this year after seeing potential in the big bike market.
BMW Motorrad set a new milestone with 1,280 motorcycles sold last year, a recordbreaking 83% jump over the previous year.
However, Ms Wannapa said the group still expected revenue to stay flat at 3 billion baht in 2016, blaming the country’s weak economic sentiment.
BMW sales are estimated to represent 50% of the group’s revenue, with Benz Amorn accounting for 16% and the rest coming from Amorn Care and Vespa.