Jump to content
Login with your Gmail HERE and start posting in seconds! ×

Bangkok International Motor Show - Stage Set For 'Motor War'

webfact

By webfact
in Thailand Motor Discussion

 Share

Recommended Posts

webfact Grand Master Member

webfact

Posted
Posted

Stage set for 'Motor War'

Kanittha Panthong

The Nation

30178934-01_big.jpg

After 2011 twin disasters, hopes ride high on annual event to yield flood of orders

BANGKOK: - The Thai auto industry suffered two major blows last year - the East Japan earthquake and tsunami as well as the Thai flood crisis - events that led to disruption of parts supplies, resulting in a temporary production halt.

While the tsunami mainly affected Japanese auto-makers that need to import high-tech parts from Japan, the Thai flood resulted in widespread damage. Production was totally ceased by every auto-maker. The industry has not yet reached 80 per cent of capacity.

During the first half of this year, as auto-makers resume production and slowly increase capacity, they also need to accelerate and adjust strategies in production and marketing in order to snatch any available sales opportunities. Many are also looking out for any major events that could take place before the end of this year, especially the return of the flood.

So, it is no surprise that large and small auto-makers alike are pouring all their resources into the Bangkok International Motor Show, which started yesterday and runs until April 8.

Usually, the event has a high degree of colour and excitement, but this year that may not be adequate to woo buyers. This year auto-makers are offering the largest number of new products as well as hard-to-resist sales promotions.

The Kasikorn Research Centre even came out to say that as many as 40,000 orders could be placed at this year's show as prospective buyers had held back from their purchases during the last quarter of last year, as well as the Thai government's First Car Buyer program and various sales campaigns, including interest rates of less than 2 per cent.

It could easily be said that this year's motor show has turned into a "Motor War". Apart from many all-new pickup models, there are also new models in every segment, starting with eco-cars from Mitsubishi and Suzuki. Now the eco-car market has five models from four brands, while the passenger pickup vehicle (PPV) market has also welcomed a new entry from Chevrolet. There are also new models in the subcompact, compact, midsized, alternative fuel as well as luxury segments.

Intense competition is expected in the pickup segment, with the Isuzu D-MAX, Chevrolet Colorado, Ford Ranger and Mazda BT-50 PRO being introduced recently, while the Toyota Hilux Vigo has gone through a minor change. The Mitsubishi Triton and Nissan Navara have also been given cosmetic changes in order to be more competitive.

As auto-makers recover from the flood late last year, the time has come for all to recuperate and enter an all-out war in the pickup truck market.

Toyota eyes 30% growth

Kyoichi Tanada, president of Toyota Motor Thailand Co, earlier announced that the company aims to produce 450,000 vehicles in Thailand this year, and the Bangkok Motor Show is a venue that it could bring about bulk sales. Toyota has more than 20 vehicles at its booth, including concept and production vehicles. It is also celebrating its 50th year in Thailand.

Apart from the NS4 and FT-EV III, which are concepts, the highlights at the Toyota booth include the new Camry, Prius, Prius C and the Toyota 86 lightweight sports car.

A high-ranking executive from Toyota, requesting anonymity, said that Toyota expects the number of orders placed at its booth would rise by 30 per cent this year.

"Last year, we had about 8,500 orders, and this year we will definitely be able to cater to the demand because every Toyota plant in Thailand has started to return to the normal situation. We are presently adjusting production and have started delivering vehicles to customers," he said.

The source also noted that Toyota has increased production to two shifts in order to be able to produce vehicles for both the domestic and export markets.

Full war

Praphat Choeychom, senior vice president at Nissan Motor (Thailand), said the atmosphere at the motor show is intense this year, especially in the small-car segment.

"Nissan was the first company to introduce the eco-car and we were highly successful. This year we also have a special model in the lineup and expect the same level of success," he said.

Nissan expects to get 4,000 orders at the show, with 3,000 being for eco-cars (March and Almera).

"Presently, Nissan still has 20,000 back orders for the March and Almera so we haven't set a high target as we don't want the customers to wait too long for the cars to be delivered," Praphat added.

He said normal production should be achieved within 1-2 months.

Pitak Pruthisarikorn, senior vice president of Honda Automobile (Thailand), said the flood crisis was a valuable lesson for Honda. The auto-maker was the worst-hit as both of its plants in Ayutthaya were totally submerged for months.

"We want to change it into power to create new technologies and automotive innovations, along with producing high-quality products. Honda is making a comeback at the Motor Show and we are stronger than before," he said.

Honda's booth consists of both models that were produced in Thailand before the flood as well as new imported models from Japan such as the CR-Z and Stepwagon.

A source from Honda Automobile added that the company has a target of 7,000 orders at the show, but the number could rise to 10,000 due to new models such as the Civic, as well as attractive sales campaigns.

Mazda, meanwhile, hopes for 3,000 orders, said Choichi Yuki, managing director of Mazda Sales (Thailand).

"Surely 1,500 orders will be for the Mazda2 while the new BT-50 PRO pickup should get 1,000 orders, while the remaining will be for the Mazda3 and other models," he said, adding that Mazda has back orders for 8,000 to 9,000 units.

"We expect to deliver the vehicles to customers as soon as possible because the production and suppliers are starting to come back," he added.

Mitsubishi, meanwhile, expects 2,000 to 3,000 orders. A company executive said the Mirage eco-car will be the strongest model at the Mitsubishi booth in terms of sales.

"Apart from introducing the new model, we are also offering cashback for the Mirage and other promotions as well," he said.

Saritporn Sakolrak, senior marketing manager of Hyundai Motor (Thailand), said, "This year we have set a target of 1,000 orders, up from 900 last year, due to the larger number of models in our lineup."

He added that the company has been asking for higher quota from the parent company in Korea so that it would be able to carry out marketing activities from the start of 2012. This would help lower the risk factor of the market during the second half of the year.

Eco-cars battle it out

The Mitsubishi Mirage and the Suzuki Swift are the two latest eco-cars in the market, and they are expected to grab a large number of orders during the 12-day event.

The Mirage, made under Mitsubishi's Global Small platform, features a high tensile steel body that is lighter and more rigid than regular steel. Power comes from a three-cylinder 12-valve 1.2-litre engine capable of producing 78hp. It comes with a CVT (Continuous Variable Transmission) and has a claimed fuel economy of 22 kilometres per litre.

But the real punch is Mitsubishi's marketing offensive that includes free insurance and a cash rebate of Bt10,000 for the first 9,000 Mirage customers. The Mirage is priced from Bt388,000 to Bt546,000.

Meanwhile, with the Swift, Suzuki is taking the same approach as Nissan with the March. That is the car is developed from the old platform and although the old model was offered in the Thai market before, it does not break the Thai eco-car requirements as it was totally imported and not produced here.

While the old Swift was powered by a 1.5-litre engine, the new one comes with a smaller 1.2-litre 4-cylinder 12-valve engine with an output of 91hp. The Swift also comes with a CVT and is priced from Bt469,000 to Bt559,000.

Suzuki executives said they initially expected about 2,000 orders at the show, but after the Swift was launched, more than 4,000 orders have already been placed, and motor show sales could be higher than expected.

The Mirage and Swift will compete against each other as well as against the Nissan March and the Honda Brio that has resumed production after the factory was flooded. Meanwhile, although the Almera is also an eco-car, the sedan body may attract a different group of customers.

PPV market is hot again

The PPV (Pickup Passenger Vehicle) is highly interesting due to the introduction of a new player from Chevrolet - the Trailblazer.

The Trailblazer is based on the Colorado pickup truck, and competes against market leader Toyota Fortuner, Isuzu Mu-7, Mitsubishi Pajero Sport and Ford Everest.

The Trailblazer features fully foldable second- and third-row seats, and is available in both two- and four-wheel-drive versions.

Antonio Sara, vice president at Chevrolet Sales (Thailand), said, "Thai customers have been waiting for many months for the launch of the Trailblazer and they want to know how much will it be priced. I believe that auto enthusiasts will be excited to know the price of the Trailblazer when we announce it at the show."

The Trailblazer is priced at Bt1.059 million for the entry-level 2.5-litre model while the 2.8-litre model is priced from Bt1.249 million to Bt1.489 million.

The coming of the Trailblazer has also pushed competitors like Mitsubishi to upgrade the Pajero Sport, which is now also available with a 3-litre MIVEC engine capable of producing as much as 219hp. It comes with a five-speed automatic transmission and is priced at Bt1.3 million. The Pajero Sport 3.0 will be in showrooms in June.

The Fortuner, meanwhile, went through a cosmetic change last year along with the Hilux pickup, and sales are still flowing. Presently customers have to wait 4-5 months to have the vehicles delivered.

The Ford Everest is now entering the final stages of its life cycle, as the new Ranger has already been launched. It is expected that the new Everest, based on the Ranger, will be introduced latest by next year.

Isuzu executives said that the Mu-7 will be replaced with a new model in two years.

Lots of choices for passenger cars

Although there are no all-new models in the subcompact segment, competition is as intense as the pickup segment.

Chevrolet is showing the sedan and hatchback of its new Sonic subcompact, which is the successor to the Aveo and will be officially launched during the third quarter of this year.

By displaying the Sonic and confirming its launch later this year, Chevrolet has somewhat been able to slow down customer decision in favour of competitors like

the Honda City, Toyota Vios, Mazda2 and Ford Fiesta, which needed to come up with campaigns or cosmetic changes.

Ford, in particular, has revamped its Fiesta lineup and introduced a 1.5-litre engine in order to qualify for the First Car Buyer programme. Previously, it had only the 1.4- and 1.6-litre engines, with the latter being the more popular model.

The Fiesta 1.5 comes with the same level of features as the original 1.6-litre model, which now gets more features like seven airbags.

nationlogo.jpg

-- The Nation 2012-03-29

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Recently Browsing   0 members

    • No registered users viewing this page.










×
×
  • Create New...