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Published on November 10, 2007

In the first nine months, the company sold 225 units and expects the full-year figure to reach 300-315. It expects sales for all of this year to increase 40 per cent from last year.

"We were very surprised by our sales figures and did not expect our growth to be a double-digit figure over last year," said CEO Wannapa Tangbanyong, "but our dedication to service and low pricing has ensured that customers have selected us to buy their Mercedes-Benz cars from. Our certified used cars come with free changes of 14 important spare parts for the whole lifetime of the vehicle. Besides that we have increased the frequency of our promotions from every three months to every two months. Of the company's sales revenue, 80 per cent comes from car sales and 20 per cent from service."

Used-car centres and grey-market private importers have seen a rise in sales this year while the premium segment for new cars has seen a strong decline.

Eton Import, Thailand's second-largest grey-market importer, said sales were up more than 12 per cent for the first three quarters. This is due mainly to the attractive promotions that grey-market importers have been able to provide, thanks to the strong baht. Used-car dealers attribute the increase in sales to fewer customers willing to spend money on a new vehicle in an unstable political and economic situation.

Wannapa said 10 per cent of the increase in sales came for new customers who wanted to drive a Mercedes-Benz but were unwilling to buy a new one. Most vehicles sold by the company average in price between Bt1 million and Bt1.5 million, though it does sell exotic models like the SLK, CLK and SL, which can cost up to Bt 8 million.

The company started its "Oktoberfest 2007" promotion yesterday and hopes to sell more than 60 units at the event.

"The first day of the promotion today has already has seen the sale of 10 units, which leaves us confident that we will be able to reach the target we set," Wannapa said. "The budget for the event is Bt2.5 million. Over the period, we'll also buy back cars from customers at Bt30,000 to Bt40,000 more than the market price. Some of our customers who are familiar with us do not even insist on seeing the car, as they are assured that it goes through a strict examination before being put on the sales floor. Rather than being attracted to the Mercedes-Benz brand, our customers want the service Benz Amorn provides."

The company will also start new showrooms known as StarServ, scattered around Bangkok. There are plans to open three or four StarServ centres in the next four or five years, depending on the situation of the market. Each centre needs an investment of Bt30 million and will include a full service centre and showroom for used cars. The first centre will open its doors next January 2 in the Ratchayothin area.

"Although we do provide free parts change for the lifetime of the car, some of our customers on the Thon Buri side or on the outskirts of Bangkok must drive a long way to get to the centres," Wannapa said. "To makes things easier for our more than 4,000 customers, we decided to open the StarServ centres."

StarServ centres are also planned for Chiang Mai, Hat Yai, Khon Kaen and Nakhon Ratchasima, although Wannapa said it all depended on the economic situation. She said the main advantage that Benz Amorn had over rivals was fast service.

Mercedes-Benz also has its own company-certified used cars called Benz ID1. Wannapa said although initially they were considered direct competition, sales indicated that people had confidence in the service provided by Benz Amorn.

The overall market trend towards second-hand cars means many auto companies now have their own used-car divisions. At the Bangkok International Motor Expo, which opens at Muang Thong Thani's Challenger Hall on December 1, companies will have booths for second-hand cars. Second-hand divisions confirming they will attend include BMW Premium Selection, Toyota Sure, Chevy OK, Benz ID1 and Mini Next.

Vijo Varghese

 The Nation