VST ECS Thailand, a member of Hong Kong-listed ICT distributor VST ECS Group, is expanding its reach to the electric vehicle (EV) sector as part of its diversification strategy beyond the IT sector to ensure sustainable growth.
Somsak Pejthaveeporndej, chief executive of VST ECS Thailand, said the company is looking into opportunities in S-curve industries for sustainable growth as IT products have a life cycle.
The company is entering the electric motorcycle business by serving as a distributor of Thomas EV motorcycles, which are produced locally, he said.
The firm is also seeking to become a distributor for other EV brands, said Mr Somsak.
He said electric motorcycles are likely to attract consumers because of their fuel cost savings, quick charging and environmentally friendly features.
These vehicles can also leverage other advanced technologies, such as Internet of Things and cloud, said Mr Somsak.
Electric motorcycles can be rented at campuses as well as serve food delivery businesses, he said.
Mr Somsak said the company set a target of 6,000-8,000 electric motorcycle sales this year and hopes to attain a 10% share of the electric motorcycle market, which is estimated at 1 million units over the next five years.
In related news, he said the local ICT market continues to grow following IT system upgrades by large enterprises and government projects geared towards digital transformation.
Banks are upgrading their systems while state agencies are ramping up public services through digital means, such as the Rao Chana (We Win) financial aid scheme, which was aimed at providing 7,000 baht in subsidies to citizens impacted by the pandemic.
Another example is a financial remedy to assist employees covered by Section 33 of the Social Security Act called the Rao Rak Kan (We Love Each Other) scheme.
There has been strong demand for servers costing around 30,000-50,000 baht as well as security software, said Mr Somsak.
He said the shortage of IT product supplies continues to be a pressing issue, not only for products aimed at the consumer market, but also those targeted at enterprises.
Supply is expected to return to normal by October, said Mr Somsak.
Last year, despite the pandemic, the company's revenue grew 8% year-on-year to 27 billion baht, driven by remote work and online learning.
Product sales for consumers and private companies each account for 33% of the company's revenue, while enterprise business solutions account for 28%. Lifestyle gadgets make up 2% of the firm's revenue.
In 2021, revenue is expected to reach 31.5 billion baht with double-digit growth, he said.
According to Mr Somsak, the company aims to capture demand for low-end 4G-based smartphones costing below 2,000 baht upcountry as users need such devices to receive financial assistance via the government-supported Pao Tang app.
"Our smartphone business is projected to grow five-fold this year," he said.