Dealerships pivots to showroom leasing amid EV market surge
A major car dealership and previously an official Mitsubishi car dealer located in Rangsit, has decided to pivot its business strategy, opting to lease its showroom space due to the rising trend of electric vehicles (EVs) in Thailand.
This decision comes as the company faces rapid changes in the automotive market and a decline in car sales, coupled with increasing competition from Chinese car manufacturers entering the Thai market.
As of yesterday, December 1, the management of the dealership has chosen to cease operations as a Mitsubishi dealer, opting instead to offer showroom leasing services. A prominent Chinese car manufacturer has already expressed interest in renting the showroom space.
A company representative explained that this strategic shift was prompted by the evolving automotive landscape and the need to adapt to current market conditions. Leasing the showroom is seen as a more viable option for sustaining future business operations.
The showroom changed its business policy by transitioning from being a car dealer to leasing showroom space, which they see as more suitable in the current circumstances.
This transition has been in the planning stages for some time, allowing for a smooth changeover in terms of managing vehicle stock, staff, and, most importantly, customer service. On the administrative side, the company has ensured that the shift does not disrupt operations, maintaining efficient management of resources and personnel.
Today marks the official cessation of showroom and service centre operations. However, services related to paint and bodywork claims will continue until December 15. Customers have been informed that they can still access after-sales services at Mitsubishi showrooms nationwide, ensuring continued support for their vehicles.
The decision to lease the space to a Chinese car manufacturer aligns with the broader trend of Chinese automakers expanding their presence in Thailand, driven by the growing demand for electric vehicles, reported KhaoSod.
