Mitsubishi Electric Kang Yong Watana Co (MKY) will increase its budget by 30% to 1.2 billion baht for business expansion in its fiscal 2016 starting April 1.
The distributor of Mitsubishi electric appliances will spend half of the budget to promote air conditioners, with the rest for other products and opening new service centres and customer support offices, one in Udon Thani and another in Rayong.
MKY managing director Yasushi Moriyama said the higher investment is in response to rising consumer confidence thanks to government stimulus measures the past few months.
The company expects the overall Thai economy will improve. It sees room to grow as the penetration rate for its home-use appliances such as air conditioners remains low.
"Our air conditioners saw a modest impact from the economic slowdown. But demand continues to increase because people will buy value products during a weak economy," he said.
Praphon Potivorakun, the deputy managing director, said MKY hired Thanavat "Pope" Vatthanapooti as a presenter for its air conditioners to lure younger customers.
It wants to focus on commercial air-conditioner sales after improving its competitiveness by producing them locally the past few years, cutting their cost by 40-50%.
MKY also wants to focus on lighting systems, ventilation and solar energy.
The company's strategy is to raise sales to 18.5 billion baht in 2020, up from 14.5 billion in fiscal 2015 ending Mar 31, 2016. The parent company in Japan set a target of global sales of 5 trillion yen (1.5 trillion baht) in 2020, up from 4.35 trillion in fiscal 2015.
Mr Moriyama said the local electric appliance industry grew 5% last year to 40 billion baht and demand would continue to grow by 5-10% this year because of the government's stimulus measures.
"The economic slump did not affect our business as much as the 1997 financial crisis. When people spend cautiously, quality and added value are more important, and Mitsubishi benefits from this behaviour," said Anun Bunjerdtum, director and general manager of marketing and sales.
Mr Anun said sales of MKY in fiscal 2016 are expected to grow by 7% to 15.5 billion baht. Of the 14.5 billion baht in 2015 sales, 61% came from air conditioners, 12% refrigerators, 10% commercial air conditioners and the remainder electric fans, water pumps and ventilation.
Thailand is an important electric appliance production hub in Asean for Mitsubishi. It has 10 subsidiaries in Thailand.
Mr Moriyama insisted it would continue to invest in Thailand and will strengthen its business here to be more competitive in the future.