Master Group Corporation Asia (MGC), a local provider of automobile services, has been appointed by French car maker Groupe PSA to be the authorised importer and distributor of Peugeot cars in Thailand.
With this move, Groupe PSA ends its 47-year business relationship with European Motor Cars Co, run by the Leenutaphong family, the importer and distributor of Peugeot and Citroen cars in Thailand since 1972.
MGC's new subsidiary, Belfort Automobile (Thailand) Co, will market Peugeot cars locally, but has not yet been appointed for Citroen cars.
The company already distributes BMW, Mini, Rolls-Royce, Aston Martin, Honda, Nissan and Maserati cars.
Joerg Breuer, Belfort's newly appointed chief executive, said the existing contract with Groupe PSA and European Motor Cars will end in August, then the import and distribution rights will transfer to Belfort.
"European Motor Cars will provide after-sales services to their customers until Aug 31," he said.
Mr Breuer said Belfort will start to market Peugeot cars next month at the Big Motor Sale, which runs from Aug 16-25 at Bitec.
The first two sport-utility vehicles models to be marketed locally are the 3008 and 5008. Belfort plans to introduce six cars in the near future.
The Peugeot 3008 is assembled at Naza Automotive Manufacturing plant in Gurun, Kedah, Malaysia. The plant is a joint venture between Groupe PSA, holding 61%, and Naza Corporation Holdings with 39%.
Malaysia-made Peugeot cars will enjoy zero customs duty to 10 Asean members, including Thailand, under the Asean free-trade agreement.
"Belfort expects to beef up Peugeot sales in Thailand with sustainable growth in the future," said Mr Breuer. "We plan to invest in the first showroom and service centre in Bangkok, then expand in 10 provincial areas by appointing local dealerships."
Laurence Noel, Groupe PSA's senior vice-president for Asean, said the plant in Malaysia has a production capacity of 75,000 cars per year and the first shipment of Peugeot 3008s is going to the Philippines.
"Thailand will be the next market," said Mrs Noel. "The plant can also assemble the Citroen C5 Aircross."
Groupe PSA has another assembly facility in Vietnam with a capacity of 50,000 cars per year, but it is under an assembly contract with a local assembler. Its output will serve the Vietnam market alone, she said.
"The plant in Malaysia is the export base for Groupe PSA in Southeast Asia and we can bring two new models annually to be assembled there," said Mrs Noel.
Groupe PSA has five car brands -- Peugeot, Citroen, DS, Opel and Vauxhall -- with 3.9 million vehicles sold in 2018.
China and Southeast Asia bought 262,583 of its cars last year. The company plans to launch 20 models by 2021.
Mrs Noel said Southeast Asia bought 10,000 of the group's cars in 2018, with Peugeot accounting for 9,000.
"We have a presence in five Southeast Asia countries, so we expect to grow our sales volume in the near future," she said. Thailand has roughly 20,000 Peugeot and Citroen cars on local roads.
"Groupe PSA is also looking to appoint a new importer and distributor for Citroen in the near future," said Mrs Noel.