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AUTO PARTS
SANTAN SANTIVIMOLNAT
Lenso Wheel Co, a major local alloy wheel producer, is confident in its performance this year despite of the uncertain political and economic environment.
The local market was very sluggish due mainly to record breaking fuel prices but the company still achieved 30% growth in sales in the first half of the year thanks to the launch of new products and aggressive marketing campaigns, said general manager Sanchai Bunthaveekij.
The company predicts growth in the local market of 30% this year and a 40% share of the total market.
On the export front, he said the market was also inactive after the onset of oil price hikes, especially in key markets like the United States where smaller cars were increasingly used rather than sports utility vehicles (SUVs).
In addition, baht appreciation against the US dollar also made it difficult to compete in the US market amidst the inflow of cheap alloy wheels from China.
Lenso still saw sound sales since it has small sizes of wheels to meet the rising demand for small sedans in the US market. Also, its brand image is strong and reliable in the US market despite stiff competition of products from China, said Mr Sanchai.
''Since we knew in advance that the US market would be in trouble, we decided to switch focus to exports in Europe to offset losses to the US,'' said Mr Sanchai.
Exports to Europe were brighter than those to the US market thanks to the relatively better exchange rates. Exports in the first half this year remained healthy as sales grew 10% from the same period last year.
The company hoped to post about 1.3 billion baht in sales this year, about 200 million baht higher than the previous year, with 40% local and the rest exports.
Mr Sanchai said the factory at Welgrow Industrial Estate in Chachoengsao will be expanded to produce 800,000 wheels from its current 500,000, most of which will be slated for cars with the remainder for pickup trucks that have less demand after diesel prices skyrocketed.
The expansion, costing about 300 million baht, is scheduled for next February.
The company introduced a new alloy wheel brand called Raiden early this year to target the new generation.
Four designs of Raiden are available while the retail prices are set at 15,000 baht for a 15 inch-wheel and 50,000 baht for 19 inches.
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