Toyota ready to celebrate a treble as Thai market leader

Toyota ready to celebrate a treble as Thai market leader.

Toyota is likely to win its first triple crown - passenger car sales, commercial vehicle sales and total sales - in Thailand after unofficial 2006 sales figures showed that it had beaten arch-rival Isuzu in the commercial vehicle category.

According to unofficial sales figures from Toyota Motor Thailand (TMT), which is one of the two companies compiling the industry figures - the other is Isuzu distributor Tripetch Isuzu Sales (TIS) - Toyota sold a total of 196,542 commercial vehicles, of which 166,358 were one-tonne pickup trucks.

Isuzu, the commercial vehicle champion for over two decades, sold 179,079 units, including 161,495 one-tonne pickup trucks. Finishing a distant third was Mitsubishi with 25,520 commercial vehicles, including 25,503 one-tonne pickup trucks.

In the passenger car category, Toyota also maintained its leadership with sales of 92,566 units, followed by Honda with 65,017 units. Nissan was far behind with 6,707 units.

In total, Toyota sold 289,108 vehicles in Thailand last year - up 4 per cent - to dominate the market with a 42.4-per-cent share.

Isuzu was second with 179,079 units, a 26.2-per-cent market share, followed by Honda with 66,633 units, a 9.8-per-cent market share.

This is the fourth consecutive year that Toyota has increased annual sales, according to new TMT president Mitsuhiro Sonoda.

"The one-tonne pickup market is the major contributor to Toyota's success. The Hilux Vigo and Fortuner PPV (pickup passenger vehicle) contributed sales of 185,709 units to give us a 41.3-per-cent share and 4.5-per cent growth in the one-tonne pickup market," he said.

"In addition, this is the first time in nine years that Toyota is the best-selling pickup truck - not including PPVs - with 166,358 units."

Meanwhile, total automobile sales in Thailand totalled 682,500 units in 2006, down 3 per cent from the previous year. Factors which prevented the 5-per-cent growth target being achieved were the flooding in some provinces and high fuel prices as well as the political and economic situation.

However, the passenger car segment experienced slight growth of 2 per cent to finish at 191,885 units, thanks to the introduction of several fuel-efficient models from Toyota, Honda and Chevrolet.

The commercial vehicle segment finished at 490,615 units, down 4.8 per cent, while the one-tonne pickup truck market reached 449,796 units, down 4.2 per cent. PPVs not included, the one-tonne pickup truck market finished the year at 423,395 units, slightly down at 0.8 per cent.

Sonoda said Toyota believed conditions will improve in 2007. "The improving economic scenario, whether it is the country's economic growth or the lowering of fuel prices, makes us believe that the government will be capable of maintaining economic and political balance."

Sonoda said Toyota expected automobile sales to grow by 3 per cent this year to 700,000 units, with 190,000 units coming from passenger cars and 510,000 units from commercial vehicles.

Toyota plans to sell 295,000 vehicles in 2006, up 2 per cent, and expects to win a 42-per-cent market share.

In the passenger car segment, it plans to sell 91,000 units for a 48-per cent market share, while in the commercial vehicle segment it plans to sell 204,000 units for a 40-per-cent market share.

The company plans to start operations at its Banpoh plant later this month to support increased demand for exports. Initial production capacity will be 100,000 units per year.

In terms of exports, Toyota plans to ship out 193,000 vehicles in 2007 worth Bt77 billion as well as parts worth another Bt39.4 billion this year.

Last year, Toyota was the biggest exporter from Thailand as exports surged by 30 per cent to 196,935 vehicles worth Bt86.5 billion, thanks to its IMV (Innovative Multi-purpose Vehicle) project, which uses Thailand as the manufacturing base for one-tonne pickup trucks and derivatives such as the Fortuner.

Parts exports reached Bt33.6 billion in 2006.

"In total, our export value was Bt120 billion last year, which is 37.5 per cent of the total automobile exports from Thailand," said Sonoda, who was making his first public appearance after being appointed to succeed Ryochi Sasaki as the new TMT president.

"Our challenge is to become a world-leading production facility in terms of safety, production quality and cost management. This will help develop the Thai automobile industry as well as create the highest level of satisfaction for our customers."

Kingsley Wijayasinha

The Nation
Friday January 12, 2007