Luxury Car Distributor's Sales Buoyant As the Wealthy Shrug Off Recession.

Dec. 7--For the wealthy, there is no recession if sales of luxury cars are an indication. While 10 million people each live on less than 900 baht a month, according to World Bank figures, there are thousands who think nothing of paying 10 million baht or more for an on-road status symbol.

The SEC Group, a major independent luxury car distributor, provides confirmation. The last four years have been good by any standard, with the company posting annual sales increases of 50 percent.

The only blip has occurred this year, when sales are projected to total 1,200 cars, down from 1,248 last year, as customers have become more cautious about spending amid global tension after Sept 11, according to Sompong Vithayaraksan, the managing director.

Established in 1990 with initial capital of 20 million baht, the group began by importing the Toyota MRII sports car.

In 1997, the year the recession started, the company posted a 60 percent lift in sales on the previous year by continuing to meet demand while its competitors backed off from the market.

"Turning a crisis into an opportunity is our key strategy. We won't hesitate to be aggressive when we are strong and our rivals are week," Mr Sompong said.

Independent importers -- also called the "grey market" -- have their origin in the economic boom of the late 1980s when authorised importers of many luxury brands brought in too few vehicles to meet the demand. In turn, the recession thinned the ranks of the grey importers who incurred huge debts through being unable to sell their inventories. As well, some were involved in other speculative businesses that turned sour.