Toyo to Seek Greater Thai Market Penetration, Build New Factory

Thai news source, The Nation has reported that the country’s sole distributor of Toyo-manufactured tyres is to begin a process of aggressive penetration in the domestic market via a change of segment emphasis from premium to the wider market and the opening of more shops in 2009. The company may also build a new manufacturing facility in Thailand, according to the report.

Khow Inter Business’ managing director, Pornchai Kruayatidee is quoted as saying that opening more retail units should help lift annual sales volume growth by 10 per cent at least. Two more Toyo shops are targeted by the end of the year, while the company has “targeted to increase this to ten locations over the next five years,” according to Pornchai, who also stated his belief that the Thai market should resume its pattern of growth soon. The company has been Thailand’s exclusive Toyo distributor for 43 years.

Toyo-brand shops sell around 90 per cent of its own brand, while the retail focus has been on selling to a wider market than its traditional premium segment, resulting in 70,000 units sold in 2008, a 75 per cent increase on 2007’s 40,000 units. The distributor also increased its marketing budget to 20 per cent of total revenue in 2009, coupling it with another sales target jump to 100,000. Pornchai also suggested that Toyo was considering a move to establish a production facility in Thailand or Vietnam, a plan that has yet to come to fruition due to the current global economic slump.