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Faith against the odds

Local importer of modified cars finds surprising success in what is essentially a niche market

Published on October 24, 2007



Faith against the odds

Suvitcha

On many occasions in life, what is needed is faith. Faith that something you are doing is going to turn out well; faith that against all odds your venture will succeed.

In some ways, that could be the story of MTM Thailand.

Parent company Motoren Technik Mayer (MTM) is an independent automotive modifier in Germany that produces modified versions of Audi, Seat, Skoda, Volkswagen (VW), Ferrari, Lamborghini, Porsche and Bentley cars. The Thai company imports MTM's modifications of only Audi models.

When it started up 10 months ago, analysts were sceptical. However, it has so far sold 50 units - 25 per cent more than the estimated sales for the year, and the year still has a couple of months to go.

MTM Thailand managing director Suvitcha Leenutaphong recalls that before launching the company, he had been thinking of bringing the MTM brand to Thailand for more than two years.

"I considered bringing in parts and then modifying the cars locally, but that didn't appeal too much. As a passionate car lover, it only made sense to bring the complete cars from Germany," he says.

With a bachelor's degree in fine arts from Australia, Suvitcha is a man who believes in being passionate about his work. But his passion for cars is a recent sentiment.

Born into a family that was responsible for bringing many European brands to Thailand, his attitude early in life was that cars were merely a means of transport. That changed when he was studying at university. Friends helped spark an interest in cars, and what started as an interest turned into a deep passion.

"Many in Thailand know that Audi is a good brand, but there are many niche markets, and I believe MTM appeals to them. MTM provides high-performance motoring along with reliability. We're not looking to sell 1,000 units. Reaching 100 would make me very satisfied," Suvitcha says.

MTM Thailand's product range numbers five models, including the MTM A3, costing Bt2 million to Bt4 million and aimed at people wanting a vehicle to use in the city.

The MTM S3 costs Bt5 million and is a high-performance version of the A3, targeted at those who are more passionate about driving and need more power for highway travel.

The MTM RS4 is aimed at male customers because of its manual transmission and V8 engine. It is priced between Bt7 million and Bt9 million.

The MTM TT is for those who want a car with a sports-car appearance. It is priced between Bt4 million and Bt5 million.

Finally, the MTM R8 is for those who want an extreme supercar. Its engine produces 420 brake horsepower, which allows the car to reach a top speed of 301kph.

"Our initial target was customers aged 25-35, but from the sales we've had in the past month, our customers range from 19-60 years," Suvitcha says. "MTM appeals to any passionate car lover. The brand is just gaining popularity in Thailand, and only avid car lovers know about it. My main focus now is to get customers who are more lifestyle-oriented but need a powerful car."

He says the current focus of the company is to establish a strong network and keep customer satisfaction high. Heavy sales are not the highest priority, and the company is currently holding back from marketing itself too widely. The first step, he says, is to ensure that MTM's existing customers are being provided with good service.

The company currently has little or no competition in Thailand, because there are no other official premium-car modifiers. However, there are the high-performance divisions of BMW and Mercedes-Benz, known as M Power and AMG, respectively. Another close competitor would be Subaru, although most of Subaru's models are cheaper than MTM's.

Suvitcha says servicing is a very important part of the company's success. All servicing of MTM cars is done by technicians who have been trained in Germany. Spare parts are also imported from MTM in Germany.

The company intends to set up a second showroom in Bangkok this year.

Suvitcha says when the company is well established, it will consider bringing other MTM-modified brands, such as VW and Porsche, to the Thai market.

MTM Germany produces 1,500 units per year that are sold in more than 40 countries. There are official MTM dealerships in Singapore, Malaysia and Indonesia.

Vijo Varghese

 The Nation


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