Business diversification: Susco Beyond explores EV market amidst fluctuating oil prices

Susco Beyond, an auxiliary affair of Susco Plc, a prominent Thai oil retailer, persists to diversify. While an integral part of their business still revolves around the oil industry, they seek to mitigate the risks associated with fluctuating oil prices through business diversification. To this end, they have turned their attention to non-oil businesses, an example of which includes their recent endeavours into the sphere of electric vehicles (EVs) under the BYD moniker.

Their business diversification into the EV market space is a joint initiative with Rever Automotive Co, the exclusive distributor of BYD cars manufactured in China. This partnership is designed to take advantage of the burgeoning EV market and is also in response to the encouragement and promotion from the Thai government regarding the use of more sustainable modes of transport.

Susco and Rever Automotive recently inaugurated a new BYD showroom in Pratunam Phra-in, located in the Wang Noi district of Ayutthaya, says Chairit Simaroj, the managing director of Susco. This showroom promises to cater to the full suite of vehicle maintenance needs including paint and body repair for BYD vehicle owners located in provinces such as Ayutthaya, Ang Thong, and Sing Buri.

For Rever Automotive, ambitions run high with plans to open 100 showrooms across Thailand throughout this calendar year. This represents a significant increase from their current tally of 30 operating showrooms. Additionally, Rever Automotive aims to swell its agent count in Bangkok in anticipation of a new BYD model launch scheduled for later in 2023.

Another noteworthy collaboration is AS Macharge Co, which is the result of a joint venture with AMR Asia Plc, a service provider of system integration and engineering. Here, the main objective is to give impetus to an electric motorcycle rental service, a battery swapping service, and an electric motorcycle maintenance centre. The advantage of a battery swapping service is a quick solution to a low-power battery, where users can simply exchange for a fully charged one, bypassing the need for waiting out a recharging period.

This unique service is slated to roll out next month in Samui, situated in the southern province of Surat Thani and targets both Thai and foreign visitors. Customers can avail of these services at any of the four Susco-operated petrol stations on the island. AS Macharge has fuelled this venture with a budget of 10 million baht, reported Bangkok Post.

“We’re looking at getting up to 40 electric motorcycles, each priced around 90,000 baht, imported from China,” said Chairit.

Depending on the response, expansion plans could further encompass other tourist hotspots including Phuket. As part of its business diversification strategy, Chairit envisions the expansion to incorporate between 300 to 400 battery-powered bikes for tourist rentals.

Susco’s business diversification efforts aren’t limited to electric vehicles. They have ventured into the food and beverage industry and convenience store businesses within the vicinity of their petrol stations. An international joint venture with Sinopec, a China-based national oil firm, led to the establishment of Sinopec-Susco Co, designed to tap into the energy market in Thailand.

Furthermore, Chairit disclosed Sinopec’s intentions to launch 100 gas stations in Thailand over the next five years under the aegis of this joint venture. Susco expects this partnership will propel its business diversification plan, with its jet oil sales upward by 60-70% over the long term.

In light of these prospective expansions, Susco plans to allocate 400 million baht from 2023 to 2027. Half of this budget, 200 million baht, is to be utilised this year for the construction of 10 new petrol stations and refurbishing 30 existing ones. The remaining funds will assist in the development of BYD showrooms and the fitting of rooftop solar panels on petrol stations, boosting business diversification opportunities.