ExxonMobil Marketing (Thailand) expects sales of its Mobil 1 lubricants to grow by 10% this year, maintaining its status as a key operator of finished lubes and chemical marketing in Thailand after Bangchak Corporation took over Esso (Thailand) Plc last year.
Bangchak bought a 65.99% share in oil retailer Esso (Thailand) from ExxonMobil Asia Holdings Pte, resulting in Esso retaining only the finished lubricant and chemical marketing businesses, operated by ExxonMobil Marketing.
"We are targeting 10% growth for our flagship products, Mobil 1, and expanding the Mobil Super customer base," said Manoch Munjitjuntra, director of ExxonMobil Marketing and lubricant sales manager.
Mobil 1, the first full synthetic engine oil introduced in 1974, will serve the drivers of high-performance cars while Mobil Super focuses on pickup truck and sports utility vehicle drivers, with the aim of protecting their engines from heavy usage.
Mr Manoch sees the potential of selling ExxonMobil's products in Thailand, which is still dominated by internal combustion engine-powered cars, though the government is promoting more use of zero-emission vehicles, as part of efforts to fight global warming.
There are more than 20 million personal vehicles on the roads of Thailand, ranging from personal cars for daily commutes to pickup trucks for heavy loads, according to the company, citing the Department of Land Transport's Transportation Statistics Annual Report 2019-2023.
Engine oil is a key element that enables the cars' engines to function consistently, which is needed by drivers, the company said.
According to the Department of Energy Business, oil demand in Thailand saw flat growth last year, but ExxonMobil believes it can sell more products, said Mr Manoch.
Besides more spending on sales promotion, the company will boost sales through its network of more than 700 auto parts shops and 1,400 car maintenance workshops and lube centres, said Mr Manoch.
"We plan to add 30-50 service locations this year to become more accessible to our customers," he said.
After Bangchak's acquisition, the company will no longer sell lubricants through petrol stations now operating under the Bangchak brand, but it can sell them through its network of car care centres, said Mr Manoch, adding that a survey found 80% of motorists tend to buy engine oil advised by car care or service centres.
Previously only 5% of ExxonMobil lubricants were sold through Esso petrol stations, so Bangchak's takeover of Esso did not seriously affect its sales, he said.