The scheme will bring together its services Michelin Fleet Solution (MFS), Michelin Truck Service Centre (MTSC), Michelin Service Express, Recamic and Energy Saving.

The services are part of Michelin's commercial vehicle (CV) segment. MFS provides customers with the option of being carefree about the tyres on their vehicle. MTSC provides roadside assistance for vehicles nationwide. The company has 20 truck centres and hopes to reach 30 this year. The centres are situated on most commonly used routes.

"The radial market for tyres in Thailand is growing. Last year over 30 per cent of the 1.8 million CV tyres sold consisted of radials," said Prayong Hirunyawanich, president of Michelin Siam.

"Michelin has a market share of about 50 per cent of the radial market, totalling about 250,000 treads. This share last year grew by over 3 per cent, while it usually grows only by 1 per cent."

The major reason for the increase is attributed to the extra safety provided by radial tyres. The company claims that radials also help save fuel. The main advantage of radials is that they can be retreaded, which can double their lifespan.

A radial tyre costs between Bt8,000 and Bt9,000 - double the price of Bias tyres. Although retreading is used commonly abroad, only 10 per cent of the Thai radial market takes advantage of retreading technology.

"Previously we made CV radial tyres which fit on 20-inch wheels, as they were primarily used on trucks. But customer needs have changed and many need smaller vehicles to enter the Bangkok metropolitan area," added Prayong.

"As a result, we have expanded our product range to include tyres which fit on 15-inch and 16-inch wheels as well. Our plan is to enter every CV market, ranging from heavy-duty trucks to vehicles that have to deliver products such as food in a limited amount of time."

Michelin has three factories in Thailand, located at Laem Chabang, Nong Khai and Samut Prakan. They produce over 10 million treads per year, ranging from tyres for bicycles to aircraft. Over 50 per cent of tyres are exported to other Asia-Pacific countries.

Prayong said the price of tyres would probably increase because of a rise in the cost of raw materials. Producers are negotiating with the government to increase the price.

"The Thai market is now open as a result of the Asian Free Trade Area and customers now have lots more choice from all over the region, so price control is not required," he said.

Vijo Varghese

The Nation