The Thai automotive market may not be experiencing the best of times. That, however, is with reference to the total market. But look hard, and you will find niches. These include cars that are sold to the elite, those who want something that auto companies cannot officially provide. The result of these needs has led to the emergence of a grey market of importers like SEC and Eton.

These two companies claim to be the largest automotive importers in the market. While SEC has chosen to go public, Eton remains private and believes that too big is not too good.

"My father originally started the company 13 years ago. Before starting it as a business, it was like a favour that he did for his friends, mainly because he had many contacts in foreign countries. By word of mouth, more people knew about it and started asking my father to bring in more cars. He then later decided to make a business of it, due to the demand. Back then, the economy was doing very well, and there was a lot of demand for imported cars. We believe becoming too big makes the company difficult to control. The majority of the cars were Mercedes-Benz S-Class," says Peerasut Tantiyankul, managing director of Eton Import.

The first showroom for the company was started on Ratchadaphisek Road and focused on selling only Mercedes-Benzes. As the years went by and the quality of Japanese cars improved to premium levels, market demand changed. The Land Cruiser VX80 was one vehicle that was highly desired. After that first showroom, Eton expanded its reach by adding four others: on Sathorn and Srinakarin roads and in Khon Kaen and Chiang Mai provinces. Further expansion plans for the future will see dealerships in Bangkok's Thon Buri district.

"But our focus now is not just on expanding, but rather on providing quality service. Selling cars is not like selling products in 7-Eleven, because it is not a one-time sale. It is the after-sales performance that gives customers faith in our services. This is where our next investments will be focused. It's important to have the right equipment to service the cars we sell," says Peerasut.

The total import market is believed to be fewer than 4,000 units. This is a very small 0.5 per cent of the total automobile market in Thailand. An exact number is not available, because there are many small importer companies that import very few units. Eton sold 557 units last year and expects the figure to stay about the same this year, due to the uncertain political and economic situation.

"Our best-selling products are Japanese, which takes up 95 per cent of our total sales. The main models are the Toyota Alphard, Toyota Estima and Lexus RX. But demand for hybrid versions are increasing, and more customers are aware of the advantage it has in terms of the environment and the fuel it saves in the long term. Most of the vehicles we sell are seven-seaters. A large proportion of our customers buy these vehicles so they can travel as a family.

"More than 80 per cent of our customers have chauffeurs, and the vehicles are used on an everyday basis. Models like the Estima and Alphard are truly multipurpose, because they can become executive as well as family vehicles," says Peerasut.

The Toyota Alphard takes up more than 60 per cent of total sales. Eton also provides the "well-cab" option, which allows a seat within the vehicle to extend out and transform itself into a motorised wheelchair for disabled people. Other small cars, such as the Toyota Sienta, Toyota Porte and Honda Stepwagon, are also imported according to customer requests.

"In a way, our competitors are the auto companies officially present in Thailand. For us, it's about finding the right spot in the market and delivering to customers exactly what they want. For example, the Japanese premium SUV we sell comes with a 2.4-litre engine, whereas the official importer sells it with a 3.5-litre version. For those who need something to use in the city more often than upcountry, our option is more attractive," says Peerasut.

Eton also accepts second-hand cars from its customers as a trade-in for its new models. The company does not have a dealership for second-hand cars but sells the used vehicles to other dealers. Although SEC says the company will install CNG kits in its vehicles, Eton says it has no such plans. Eton will also not be present at Bangkok's annual Motor Expo, which is dominated by SEC.

Vijo Varghese

The Nation