Car-Lack slows drive to expand

Car-Lack slows drive to expand

Car-care franchiser Car-Lack (Thai-German) is resisting resuming an aggressive expansion in Thailand despite improving economic prospects next year.

"Competition is very aggressive among many hundreds of car-care owners in Thai market, especially in Greater Bangkok," general manager Sirijit Karnchanabatr said yesterday.

"The company opened only five new branches this year, four of them upcountry."

In recent years, the company has aggressively expanded its network throughout the country, averaging 10 branches a year.

The company operates 54 branches, and plans to open only six branches next year.

According to Ms Sirijit, the company has found partners and customers still have limited budgets for their investment and spending given the unfavourable economic situation.

Car-care franchisees have to invest 2-3 million baht for facility construction excluding the price of land plot.

Car-Lack is the franchiser of Moly Care, a car-care centre offering coating and maintenance services and the authorised distributor of Car-Lack68 German car-care products in Thailand and Indochina.

The company is also the distributor of motor oils and additive chemicals under the German-brand Liqui Moly brand in Thailand.

The company has also expanded its franchises to Laos, Cambodia and Myanmar.

A study is under way for expansion in Vietnam.

Car-Lack expects to increase its revenue by 10% next year from 50 million baht this year.

Ms Sirijit said the motor oil market averaged growth of more than 10% a year, with the figures estimated at 20 billion baht this year.

Because of this, the company will focus more on motor oils and additive chemicals next year, especially for luxury cars and big motorcycles, as these vehicles often require intensive work and use high-end products.

Next year, Car-Lack plans to raise revenue from this business to 100 million baht from 80 million this year.

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