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Published on August 28, 2007

Managing director Sompong Phaoenchoke yesterday said sales had been affected by the overall economic slowdown since late last year. Sales of old-model cars have been lower than targeted, and the company could not launch its new models as scheduled.

The company plans to boost sales of sport-utility vehicles (SUVs), so that they generate about 25 per cent of total revenues next year, rising from 6 per cent this year. This forecast is based on the assumption that the economy has already bottomed out.

The higher sales of SUVs will be derived from the launch of new models, including the Chevrolet TR Allroader and other models from Isuzu and Chevrolet.

In the second half of this year, TRU expects to make a profit from new models, with sales of 120-150 vehicles a month. Normally, its initial profit from selling a SUV would be about 20 per cent, but it expects the margin to be only 10 per cent.

Sompong said the company had reduced fixed costs and unneeded advertising and was focusing more on sales activities.

Income from other channels, such as car manufacturing, continues to expand despite the economic slowdown.

The company will spend Bt500 million to Bt600 million on factory construction, machinery and devices on a 70-rai plot in Chon Buri province.

The factory will have a production capacity of 100 cars a month, allowing TRU to expand its exports to within Asean and other markets.

The company also intends to push forward its plan to produce 40- and 20-seat buses, because new partners have expressed interest in investing in the project. This will be less risky than investing on its own, said Sompong.

Siriporn Chanjindamanee, The Nation