MGC has Nissan dealers in sights for expansion move
text size

MGC has Nissan dealers in sights for expansion move

The image of Nissan factory supplied by the company.
The image of Nissan factory supplied by the company.

Master Group Corporation Asia (MGC), a local provider of automobile services, is considering acquiring more Nissan distribution outlets as part of a bid to diversify its car brand portfolio.

Managing director Sunhavut Thamchuanviriya said the company is in acquisition talks with a couple of middle-sized dealers of Nissan but did not reveal any details.

"We see mergers and acquisitions as an easy way to increase MGC's vehicle portfolio, similar to the way MGC acquired Bangkok outlets from an authorised Honda dealer last year."

At present, MGC runs only one Nissan outlet in Yaowarat, with sales of about 600 units a year.

In mid-2015, MGC acquired three Honda outlets in Bangkok from authorised dealer Summit Honda Automobile for 1 billion baht, bringing the number of Honda outlets operated by MGC to four.

MGC reported Honda sales rose from 1,150 in 2014 to 4,735 in 2015.

Founded in 2000, MGC has eight business units: new cars from BMW, Mini, Rolls-Royce, Aston Martin, Honda and Nissan; used cars; car service centres; rental services; an insurance brokerage; an auto training centre; information technology; and yacht distribution for Azimut.

The company sold 10,000 cars last year, 4,500 of which were BMWs and Minis, 4,735 Hondas, with other brands accounting for the rest.

Total sales rose 70% from the year before, thanks in part to the acquisition of the three Honda outlets from Summit.

Given the sluggish automotive market, Mr Sunhavut admitted the company is now highly likely to miss the target of 11,600 vehicles earlier set. At best, he said overall sales would be on par with last year's performance.

"2016 is a tough year from MGC," he said. "The poor economy has affected not only the mass market but also the luxury segment."

MGC operates outlets mainly in Bangkok for all brands, with a BMW and Mini branch in Ubon Ratchathani. Two new outlets named MGC-Asia Auto Complex in Phuket and Hat Yai, will open in October and the first quarter of next year, respectively. They will sell all of MGC's automotive brands.

Do you like the content of this article?
COMMENT