Leapmotor, an electric vehicle brand and a subsidiary of Stellantis, has announced the appointment of Phra Nakhon Yantrakarn (PNA) as its official distributor in Thailand in early September 2024, as previously reported by the press.

Thai consumers are closely watching this appointment due to concerns about Phra Nakhon Yantrakarn's past performance. Previously, brands managed by Phra Nakhon Yantrakarn, such as Daihatsu, GM, FIAT, Alfa Romeo, and Proton, did not fare well.

The press had a special interview with Thawatchai Chongsongwanpornsuk, managing director of Phra Nakhon Yantrakarn, the official importer and distributor of Leapmotor cars in Thailand. The discussion focused on building consumer confidence and the business plan for this new distributorship.

Q: What is the consumer view on Phra Nakhon Yantrakarn's past issues?

A: It must be acknowledged that there have been communication problems in the past. When we were distributors for various brands, there were instances where sales were so high that the parent company decided to enter the market itself. As a result, our role was reduced to being a mega dealer or a joint venture partner.

Later, many parent companies changed their global policies and shareholders, which led to the cessation of marketing and branding in Thailand. These companies did not communicate these reasons publicly, which led to a negative image among consumers.

It is also acknowledged that changing this perception is challenging and may cause a loss of confidence. However, we want to clarify that for every brand the parent company has discontinued, we will continue to provide after-sales service until the end.

Q: Why did you choose Leapmotor for the Thai market?

A: Although the brand may not be well-known in Thailand, it is a part of Stellantis, a leading global car manufacturer. Thai consumers are familiar with Stellantis brands such as Peugeot, Jeep, Maserati, and others.

Leapmotor offers high-quality vehicles that stand out from other Chinese brands. Developed on a unique platform with European-standard safety systems and suspension tuned by Maserati, Leapmotor vehicles offer a driving experience more akin to European brands.

Q: What is the business plan for Leapmotor in Thailand?

A: The company plans to appoint 12 dealers, with five in the provinces and seven in Bangkok. It will also establish a flagship store in Ratchayothin, with an investment of THB 20-30 million (US$ 603,350-905,030). Additionally, the company plans to spend THB 100-150 million on brand building and marketing.

The launch of the Leapmotor C10, a 100% electric SUV, is scheduled for the Motor Expo 2024 in November, with a sales target of 1,500-2,000 units per model per year. The company also plans to launch at least one new car model per year.

New model dealers will sell cars from all Stellantis brands. The company has the right to appoint official dealers of Leapmotor, with Stellantis Thailand as a joint approver, to avoid overlapping distribution. Stellantis dealers in Thailand will be able to sell cars from all brands within the network, creating stronger dealerships. Dealers must install the brand's logo at their showrooms.

Thawatchai mentioned that Phra Nakhon Yantrakarn has subsidiaries involved in car rental, car assembly, car finance, and dealerships of various brands such as Isuzu, Honda, Mitsubishi, Volvo, Great Wall Motor, Ford, Mazda, Ododa, and JC, with a total of more than 10 showrooms.

However, the current competition in the Thai automotive market, especially in the electric vehicle (EV) segment, is still evolving. It is believed that in the future, many brands may struggle to survive, similar to the situation in China. Brands that endure must be strong in product quality, business operations, and financial stability.