Company opens first garage in joint venture
Loxley Plc, one of Thailand's largest trading conglomerates, has made a foray into the automotive service business, opening its first garage with an investment of 30 million baht.
Senior vice-president Nattapon Dejvitak said the garage, Car Con, can repair 100-150 cars a month. It occupies a 2.5-rai site on Rama III Road and officially opened last week.
"Despite the sluggish economy, the automotive service business remains promising and the number of vehicles increases every year," he said.
Mr. Nattapon said as of 2015, there were 14.6 million vehicles in the country, but there were only 8,953 car repair garages nationwide, translating to 1,630 vehicles per garage against 800 vehicles per garage in Japan.
Loxley now runs four key business units - ICT and projects, trading, services, and joint ventures.
In 2014, the company signed a joint-venture agreement with Car Conveni Club, a Japanese car repair company, to launch a franchise network in Thailand.
Loxley holds 51% of the joint-venture firm named Car Convenie Co with registered capital of 50 million baht, while Car Conveni Club owns 40% and Laotian car dealer KP Group holds the remainder.
Last November, the company also formed a joint venture with US autoparts maker Federal-Mogul Motorparts to distribute spare parts in Thailand and Indochina.
The US company took a majority stake of 51% in Parts Zone (Thailand), a Loxley subsidiary, for 60 million baht.
Founded in 2004, Parts Zone is the multi-brand distributor of equipment and tools for vehicle services, industries and other uses.
Mr. Nattapon, also managing director of Car Convenie, said the first flagship garage is expected to generate revenue of 40-50 million baht this year.
It plans to start selling the Car Con franchise in the third quarter of this year.
Mr. Nattapon said the company expected to have 10 franchises by 2017 and 100 garages nationwide by 2020.
"By 2020, Car Convenie is estimated to generate revenue of 150-200 million baht from franchising and royalty fees and related material distribution to its network," said Mr. Nattapon.