maintenance service for vehicles of non-SEC clients

SEC Auto Sales and Services, Thailand's biggest grey-market auto importer, will for the first time provide maintenance services for non-SEC clients.

The move is a bid to increase service and maintenance revenue amid the worsening economy. It will start with the upcoming "Motor Expo 2008" and be part of SEC's marketing strategy for next year.

Kittima Sudasna, assistant managing director for marketing affairs, last week said the Thai economy would be terrible next year. Thai consumers will think carefully before buying a new vehicle, particularly a luxury one, so the company must increase revenue by providing repair and maintenance services to non-SEC clients.

As well, it will increase the guarantee period and mileage for SEC clients from one year or 30,000 kilometres to three years or 100,000 kilometres.

"This will be the first time for us to welcome non-SEC clients for maintenance services, as well as increase the guarantee period and mileage," he said.

Kittima said these strategies would boost the company's net profit.

"The company's gross profit margin will definitely improve from this year," he said.

He said the company would also reduce next year's marketing budget 15 per cent, in order to save on operating costs. It will not scatter money throughout media channels, and particularly not outdoor media, which do not directly penetrate SEC's target group.

He said SEC would next year focus more on importing energy-savers like hybrids or compressed-natural-gas vehicles - or even vans, which can transport more passengers than regular autos. Consumers are more concerned about energy costs nowadays.

Kittima said SEC's third-quarter operating results were the lowest so far this year, due to the international financial crisis, which was also affecting the local economy. Despite a declining global oil price, Thai consumers remain careful about spending. The company's third-quarter vehicle sales volume dropped by half, from a previous average of 100 units a month.

SEC sold 600 luxury vehicles in the first half of the year but only 150 in the third quarter, although it still showed a profit for the period, he said.

"We've revised this year's revenue estimate downwards. Before, we expected revenue to grow 20 per cent from last year, but now the best we can do is only 10 per cent," he said.

SEC last year generated revenue of Bt2.5 billion for a net profit of Bt982 million.