KPN Motor Car eyes bourse listing to diversify business

Several financial institutions have asked KPN Motor Car to become a listed company after witnessing its healthy growth as an auto-parts operator and taxi-assembly business, he said.
“Right now we are not ready for such a move, but several banks have offered capital for KPN to engage in hire-purchase lending to people who don’t have enough money of their own to buy a taxi from the company. However, one day we should go to the stock market because it is a source of funding to support business expansion in the future,” he added.
The company also plans to develop a condominium project in 2018 to serve niche consumers who want to own a private residence.
Keattisak said property development could help KPN Motor Car reduce the risk from its auto-parts business, while the company has enough land plots for developing condominium projects.
However, the major revenue earner at present is taxi assembly, a line of business that KPN Motor Car moved into about six years ago.
With the know-how gained from its parts business, KPN Motor Car decided to assemble exteriors and interiors for taxis in the hope of upgrading the quality of taxis in Thailand, he explained.
“All the taxis we assemble are of a higher quality than the general cabs in operation. Our taxis are all installed with an Italian-standard LPG [liquefied petroleum gas] system. Moreover, the taxi meter is digital, to prevent drivers cheating on price,” he said.
“Taxis are the second image that visitors to the country get, after the airport. When I visited Singapore in 2009, the quality of the taxis was unlike those in Thailand even though the vehicle models were older than Thai taxis.
“In 2010, I decided to assembly VIP taxis from our know-how in supplying replacement auto parts, as I wanted to help improve the overall image of the Kingdom’s taxis,” he added.
KPN Motor Car partners with Toyota in its taxi-assembly business, in a deal under which all taxi-buyers receive a discount when using the services at Toyota shops.
Recently, the company also introduced a “taxi for lady” scheme, under which female drivers will be behind the wheel of cabs serving female-only passengers.
The company is installing a CCTV system and GPS as special equipment in these taxis.
“Our ambition is to see KPN taxicabs accounting for half of the taxis in Bangkok, with around 100,000 vehicles being fitted out each year. Quality taxis on the capital’s roads will give the country a good image, and KPN wants to be part of providing that image,” Keattisak said.
A key factor in the success of KPN Motor Car’s replacement auto-parts business is that its parts are sourced from five countries, with each nation’s products different in terms of both quality and price, the company’s founder said.
“Supplying replacement auto parts is like providing a tailor-made suit. We should know which countries have expertise in making auto parts at prices that customers can afford. For example, auto parts that are at the heart of a vehicle should be Japanese-made, while body parts should be from Taiwan and the brake pads should be Indonesian,” he explained.
Meanwhile, the company is developing a flagship outlet for tyres under the name of KPN Auto Tyre, with the aim of operating this line of business as a franchise next year.
“Supplying auto tyres can be a low-cost business, similar in a way to a low-cost airline. In an economic slowdown, we believe low-cost products can answer the needs of buyers who are looking for reasonable prices coupled with good quality. We already operate as a wholesaler of several brands of auto tyre, therefore we know what we can offer to end-users [at KPN Auto Tyre],” he said. The flagship KPN Auto Tyre outlet will also comprise a coffee shop and a car wash, as it is important that the model serves the lifestyle needs of new-generation consumers, Keattisak said.
The company hopes the model will attract both local investors and those from neighbouring countries who want to run a modern auto-tyre business on a franchise basis, he added.