Launch of New Models to Boost Thailand's Commercial Vehicles Market |
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By: Frost & Sullivan Posted: 2006-11-27 20:30:46 |
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Vehicle manufacturers in Thailand are launching new models in a move to boost market share and sales in the commercial vehicles market.
These manufacturers are striving to differentiate themselves by offering new products in a competitive landscape. New analysis from Frost & Sullivan, Thailand Commercial Vehicles Market, reveals that the market accrued 510,484 units in 2005 and is likely to increase to 1.36 million units in 2012 at a compound annual growth rate (CAGR) of 15 percent. If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Thailand Commercial Vehicles Market. "Vehicle manufacturers have increased their spending, by launching new promotion schemes when marketing their products. Accessory giveaways, free service and attractive financing deals are being offered to clients," says Frost & Sullivan Industry Manager V. Bhanu Prakash. He notes that the pickup truck is the most popular vehicle in Thailand as it is easy to maintain and spare parts are cheap and easily available. "Service centers for these vehicles are found across the country and most of the components are locally produced. These vehicles are sold at lower prices, as they fall under a tax band lower than that for passenger cars," he adds. The pickup segment accounts for 92.1 percent of total vehicles sold in Thailand. The dominance of pickup trucks is due to the large agricultural sector and the tax regime that has favored purchases of these vehicles rather than passenger cars. Therefore, performance in Thailand's commercial vehicles market will depend on the sales of pickup trucks. However, rising fuel prices is likely to dampen sales of commercial vehicles in Thailand, Prakash says. The Thai government had raised fuel diesel prices by 20 percent in 2005. Many fleet operators expect to defer their decisions to buy more vehicles due to the fuel price hike. He adds that rising costs in producing environmentally friendly pickup trucks is another challenge faced by manufacturers in the commercial vehicles market. Thailand is at the forefront of reducing emissions from vehicles and is currently following Euro 3, which requires the vehicles to use advanced powertrain technologies such as common rail diesel injection or catalytic converters in gasoline-powered vehicles. Vehicle manufacturers have to invest in machinery and tooling to adapt to the new standard, which increases the cost of the vehicle, as incorporation of the new technology entails a huge investment. "Increasing prices of pickups are negating the price advantage that these vehicles have over the passenger car segment," Prakash says. The Thailand Commercial Vehicles Market (P059-18) is part of the Automotive & Transportation Growth Partnership Service, and it provides a detailed analysis of the commercial vehicles market in Thailand and the future trend and opportunities in the market from 2006 to 2012. The research service discusses the current and future market situations, challenges facing the industry, the market drivers, restraints, key technology, market and legislative trends, revenue estimates and forecasts for commercial vehicles market, strategic conclusions and recommendations, and profiles of key market participants. Interviews are available to the press. Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. |
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