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Published on September 26, 2007

This is because its No-1 position in the pickup market is threatened by Toyota, the world's largest auto-maker. Yet, while meeting Thai reporters in Tokyo, top executives of Isuzu Motors and Mitsubishi - joint owners of Tri Petch Isuzu Sales in Thailand - are undeterred. They are optimistic that Toyota's aggressiveness will soon backfire and that Isuzu will rise again despite fierce competition and several negative factors.

"Isuzu has been as strong as we expected and sometimes stronger than expected," said Goro Shintani, executive vice president of Isuzu Motors and former president of Tri Petch Isuzu Sales.

For more than 30 years, Isuzu has been the No-1 player in the light-pickup segment. Reflecting this strong presence, the company started to export its Isuzu D-Max from its plant in Thailand in 2002, when Shintani was Tri Petch's president.

Although domestic sales have slowed this year, the Thai market remains a key market of the group. A recent annual report by the Isuzu Group said Asian sales grew 3.2 per cent from the previous fiscal year to 456.4 billion yen (Bt136 billion) on brisk sales of pickups within Asean. In the Thai market, where pickups account for about 60 per cent of sales, Isuzu Group pickups have captured a 39-per-cent market share, sustaining steady sales growth in the face of intensifying competition. Within Asean, operating income was ¥22.1 billion, up ¥1.1 million from the previous year, due to continued brisk sales of pickups in Thailand, the annual report said.

Mitsubishi Group co-CEO Hideyuki Nabeshima, who used to be Tri Petch Isuzu general manager, said the baht's appreciation would not hurt the Thai unit's operations.

"Years ago, the yen was nearly 300 to the US dollar. Now, it's barely above ¥100. Even so, we've been doing well. The baht's appreciation has been small compared with that of the yen," Shintani said.

The significance of Thai market continues, although early this year Toyota for the first time claimed market leadership, thanks to its Hilux Vigo.

Shintani, who heads the International Sales Division, said Toyota had achieved that ranking through tactics that could not last long.

"Toyota is buying clients," he said. "We cannot and will not. We buy the hearts of clients."

Ryo Sakata, another former Tri Petch president and now senior vice president of Mitsubishi and chief operating officer of Isuzu's Business Division, said that before he left Thailand last year, Toyota cut the prices of its trucks heavily. He insisted that satisfying clients in terms of service would be the key rather than price-cutting.

Nabeshima agreed. He said the Thai operation would thrive through the right answers to clients' demands.

To mark his words, Tri Petch Isuzu plans to launch a new medium-sized pickup in Thailand. The truck was launched in Japan last December and the US market this past February.

At a time when oil prices are escalating, Isuzu is also looking for an opportunity to launch autos fuelled by

natural gas for vehicles, as well as a computerised Mimamorikun system, which helps truck operators manage fuel consumption and shipment schedules more efficiently. Through a GPS-guided system, operators will know whether their drivers are off track or driving in a fuel-wasting manner.

Shintani remarked there could be hiccups in the short term.

"But of course, Isuzu's long-term prospects are still good in Thailand," he said.

Achara Deboonme

The Nation

Tokyo