SET-listed Susco Plc, a local oil retailer, is putting a greater emphasis on non-oil businesses by establishing electric vehicle (EV) and car financing businesses as part of its efforts to depend less on the oil trade, which is prone to global price fluctuations.
The company recently teamed up with IFS Capital (Thailand) to form Beyond Leasing Co, a joint venture providing financing services for car leases and auto hire purchase agreements with registered capital of 100 million baht.
Susco will hold a 51% share in the new company, with the remaining 49% funded by IFS Capital, said managing director Chairit Simaroj.
Beyond Leasing will serve prospective customers who are interested in the Denza, a seven-seater electric multi-purpose vehicle launched by China's BYD.
Susco earlier announced it had partnered with Rever Automotive Co, the sole distributor of BYD cars in Thailand, to seek business opportunities in the growing EV market.
Susco last week confirmed Susco Beyond Infinite Co, a wholly-owned subsidiary, would run its EV business.
By cooperating with AMR Aisa Plc, a system integration and engineering service provider, Susco Beyond Infinite forged AS Macharge, a joint venture to operate since last year an electric motorcycle rental service, battery switching stations and an electric motorcycle maintenance centre on the resort island of Samui in Surat Thani.
Susco has four gas stations on Samui, which are used to provide these services to drivers of battery-powered motorcycles.
Their joint business has yet to receive a positive response from local people and tourists who prefer to use petrol-powered motorcycles, said Mr Chairit.
Last year Susco and Rever Automotive jointly opened a new BYD showroom in the Pratunam Phra-in area of Ayutthaya's Wang Noi district.
The establishment of Beyond Leasing and Susco Beyond Infinite are the latest moves which are part of a plan to earn revenue from non-oil businesses after Susco diversified into food and beverages as well as convenience stores, said Mr Chairit.
He said Susco allocated a 2-billion-baht budget for its business operations between 2023 and 2027, with most of the funds supporting non-oil businesses.
It will spend almost 500 million baht from this budget this year, which is equal to its spending in 2023.
Mr Chairit said the company expects revenue for 2024 to be on a par with that of last year, which stood at 30 billion baht.
The company's sales of jet fuel and non-oil businesses played a key role in offsetting a drop in revenue last year, following the sale of 25 petrol stations to China-based national oil company Sinopec.
Currently Susco runs a total of 260 petrol stations nationwide, which are expected to sell 1 billion litres of oil in 2024, similar to the amount it sold last year.