UD Trucks target Heavy Truck Market in Thailand
UD Trucks, the Japanese truck manufacturer is aiming for a market share of minimum 15% within the heavy-duty truck sector in Thailand. This was the position of UD Trucks three years back also when UD Trucks had nearly vanished from the market. The Volvo Group in Thailand has allotted 4 billion Thai Bath with a purpose to build up the UD Trucks brand in the domestic markets.
The heavy duty truck market in Thailand has a great potential for growth. UD Trucks has seen a 28% increase in sales in its first quarter of 2012 in the heavy truck segment in Thailand market. The final quarter of year 2011 has recorded sales of 12,000 which is a remarkable 7% increase compared to the year 2010. The Volvo Trucks had shared nearly 5% of the market. UD Trucks hopes that there will be a demand for at least 12,000 heavy duty truck sales looking at the projected economic growth in 2012.
The UD Trucks will be rejuvenating the UD Trucks Brand by strengthening its distribution channels in the local markets. UD Trucks also plans to increase its number of dealerships nationwide from 5 to 17. It will mainly concentrate on after-sales services of its Volvo brand.
Nissan Diesel Trucks established its presence in Thailand in 1987. Nissan Diesel Thailand had completely stopped building and distributing the UD Trucks in the Thai market following the legal actions against AB Volvo, Sweden from Hong Kong listed Tan Chong group.
UD Trucks in Thailand
In end 2012, UD Trucks has ended its dispute over marketing rights with Tan Chong Group in Thailand. Now, Thailand’s Volvo Group is the only distributor and manufacturer of UD Trucks in the Thai market.
In January 2012, Sweden’s AB Volvo officially took over UD Truck business in Thailand. This was after the two year long clash with Tan Chong International ended in January 2012. Volvo now holds the rights and Tan Chong group will assemble the brand. Right now in Thailand there are nearly 7000 UD Trucks in use. Half of these stay loyal to the UD Trucks brand. The UD Trucks Management also has a plan to relaunch the UD Trucks brand in Thailand and working hard in this direction. It is also getting ready for its services and spare parts.
Thailand’s Volvo Group will use the five existing branches to service and sell UD Trucks. In the coming year, it plans to open 10 more outlets in different parts of Thailand. After the company takes over the complete UD Trucks operations in Khon Kaen this June, it will open its first new workshop and showroom. Genuine spare parts for all current models of UD Trucks are sold at all UD Trucks showrooms in the nation. Several more outlets will soon open.
Volvo Group Thailand is still to begin the sales of new models of UD Trucks but the sales will soon commence. Volvo Group Thailand also plans to distribute the existing CWM models in markets of Thailand. The products will range from rigid trucks, truck tractors and truck mixers.
Volvo Group Thailand is going to invest 4 billion Thai baht in Thailand. The investment will be used to purchase and expand UD Trucks plants, upgrade existing outlets and open new outlets.