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Published on January 30, 2008

While almost every carmaker in Thailand recorded a drop in sales last year, only one Japanese brand posted a rise.

Nissan Thailand finished 2007 with sales of 38,297 units, compared to 30,625 in 2006, an increase of 25 per cent.

It expects another sizeable sales increase this year, to 40,000 units, and the main driving force will continue to be the Navara pickup.

The Navara was the main factor behind last year's giant leap, after it was launched last January. It is the first pickup on the Thai market to feature a six-speed manual gearbox. The Frontier Navara is popular amongst Thais as a workhorse. It can carry loads way above its official 1-tonne claim, making it a favourite upcountry.

"Last year was a good year for us," says Siam Nissan Automobile's vice president for sales and network development, Roger Immel, "but we were still limited in the products we sold because the single cab [Navara] was not yet in the line-up. This year we will introduce the single cab at the Bangkok International Motor show in April."

According to data compiled by Tri Petch Isuzu Sales, 631,250 vehicles were sold on the domestic market in 2007. The pickup market fell by 9 per cent while passenger car sales tumbled by 11.3 per cent. Together, they helped pull down total vehicle sales in 2007 by 7.5 per cent from the previous year.

The figures make Nissan's 25-per-cent increase an impressive performance. Amid the economic woes and political uncertainties of 2007, Toyota's sales contracted by 2.43 per cent, while those of Isuzu fell by 15.66 per cent. Honda's sales dropped by 12.17 per cent and Mitsubishi's by 11.19 per cent.

Nissan expects to export 60,000 Navara pickups to more than 120 countries this year. As demand for the Navara extra-cab and four-door versions is still high in foreign markets, it has taken time for the single cab to go into production. It has not previously been developed by the company, and will be unique to Thailand.

To continue its success story, Nissan is putting more emphasis on its activities at this year's Bangkok International Motor Show.

"We want to make the motor show a special event for both our customers and salespersons. It is important that our salespersons feel privileged to be on the show floor, and only the best of them from each dealer will be chosen to represent the company. We plan to promote a feeling of exclusivity among our salespersons by providing uniforms and special recognition awards to those who perform the best," Immel says.

Nissan will spend Bt35 million on its booth at this year's motor show, Bt7 million more than last year. Its location has also been changed to an area more easily accessible by visitors.

Immel says special focus will be given to the process on the show floor, such as how customers will be dealt with if they are interested in buying.

The focus will also fall on the government's E20 alternative-fuel programme, in which excise duty has been cut from 30 to 25 per cent for vehicles capable of using E20. This has led to price cuts by almost all major auto-makers.

In Nissan's case, Immel says the company has passed down the entire 5-percentage-point difference in excise to customers.

Both Nissan's Tiida and Teana models are E20-capable. The price of the Tiida has fallen between Bt40,000 and Bt45,000 and for the Teana between Bt65,000 and Bt85,000.

Immel says Thailand's auto market will remain tough this year. Against the expectation that consumers would regain their spending confidence after the election, the situation has not picked up suddenly.

"We predict the total market this year will demand about 630,000 units - almost no growth when compared to 2007. It will take at least six months before the economy completely stabilises after the new government is in place, so it will take until about September before people start spending on vehicles and a boost is seen in sales."

Vijo Varghese

The Nation