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Fuel crisis boosts electric vehicle sales

Global Electric Motorcars Asia, the sole distributor of the GEM line of electric vehicles, is enjoying brisk sales increases of 30 per cent a year thanks to growing concern over rising oil prices and global warming.



The company is in talks with several convention and exhibition centres to provide GEM scooters for rent at events and fairs, managing director Ekasit Kunanantakul said last week.

"GEM scooters are an attractive alternative for trade-fair attendees, especially younger and older persons," he said, adding that providing the vehicles at the events was a good way to promote their usefulness.

GEM scooters are gaining in popularity, as they are priced at Bt39,500-Bt72,000, compared with electric cars with prices starting at Bt425,000.

When the company showed its scooters as well as electric cars and golf carts at the recent Bangkok motor show, children and seniors preferred the scooters. This gave the company the idea of talking with MICE (meetings, incentives, conventions and exhibitions) operators about providing scooters at the fairs.

Revenue will be shared equally between the centres and the company, Ekasit said.

Global Electric Motorcars Asia started up six years ago. Sales have taken off in the past three years along with the escalation in oil prices.

The company's revenue comes from leasing and selling, in equal proportions.

"We had Bt50 million in the first year of operation. Sales climbed to Bt300 million last year. Sales

have increased by 30 per cent on average due to the rising oil price and concern about climate changes," he said.

About 97 per cent of its customers are in the real estate business, including hotels and resorts. Six-star hotels in the South like the GEM brand because its electric cars are more luxurious than golf carts.

He admitted that the car price seemed high, but if the government were to provide tax-free incentives for electric vehicles - some countries in Europe and states in the US do - the price would be reduced and more attractive to buyers.

Electric parts for electric cars are taxed here at 40 per cent.

Ekasit said the company has tried to ask the Transport Ministry to allow registration of electric cars, which will let people drive them on main roads besides secondary roads.

"GEM cars are different from golf carts, as their top speed is 75 kilometres per hour and their driving range per charge is 70 kilometres," he said.

The company maintains its head office and service centre in Samut Prakan to cover nearby provinces and another centre in Phuket to serve customers in the South. It has technicians on standby in the North and Northeast as well.

The company also exports to countries in Asia.


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