Master Group to invest Bt1 bn in ASEAN expansion

Under the investment plan, the company will become an integrated car-services provider and the leading car seller in the country. It will also double its revenue to Bt15 billion in 2015.
It currently operates three core businesses – Millennium Auto, a leading BMW and Mini dealer, Master Car Rental, and Bosch parts centres.
It will open six businesses, including import of luxury-car brands such as Roll-Royce, tuning centres, another car-rental service with foreign partner Sixt, the biggest car-rental service in Germany, and a general and life insurance brokerage.
Managing director Sunhavut Thamchuanviriya said yesterday that the Bt1-billion capital-expenditure budget would cover its business-restructuring plan and the completion of some new businesses such as luxury-car import in the first quarter. The businesses related to car rental and insurance brokerage will be set up in the third quarter.
The group plans to expand into the car-rental business not only in Asean but in Europe through its alliance. To support a stronger network, when the number of customers reaches 10,000-20,000, the company needs working capital of Bt10 billion to Bt20 billion.
It will set up Master Automotive Training Centre, an integrated automotive knowledge and training centre, and I24, a centre of information and technology as well as a call centre to smooth the group’s diversification.
When free trade in Asean is fully implemented, all players in the auto retail market in Thailand will need to adjust to tougher competition. Many foreign players in the auto business will enter the Thai market.
“This year, we expect to achieve growth in all major businesses, especially the trading of new imported vehicles such as BMW and Mini, which is expected to increase respectively by 35 per cent and 28 per cent,” Sunhavut said. “The growth will be driven by the launch of new models as well as the opening of a showroom and turnkey auto service centre on Rama III Road in March.”
The company targets sales of more than 1,500 used cars this year. It expects its revenue from car rentals to exceed Bt1.1 billion, from insurance brokerage to increase 40 per cent to Bt550 million and from auto service centres to reach Bt700 million.
“It’s more than a decade that our business has been running successfully. We were able to achieve Bt8.5 billion in total sales last year, up 28 per cent over the previous year, despite many negative factors that had hit the local auto industry,” Sunhavut said.
Millennium Auto sold 1,500 BMWs and 350 Minis last year. Master Certified Used Car also sold more than 800 vehicles last year.
Master Car Rental, together with Master Driver and Services, which provides auto emergency and driver training services, chalked up a 22-per-cent rise in combined revenues to Bt888 million last year.
Master Motor Services (Thailand), which runs MMS-Bosch Car Services for mainly out-of-warranty cars, saw its revenue surge 40 per cent to Bt110 million last year.
Maxi Insurance Broker boosted its insurance premiums by 35 per cent to more than Bt400 million last year.