Scania Siam Co, the local arm of the Swedish bus and truck maker, is set to spend 800 million baht to build a new assembly facility for tractors and bus chassis in Thailand, with operation scheduled to start in 2018.
Managing director Stefan Dorski said the investment decision stems from the company's realisation of Thailand's capability to be a key strategic location and hub of Asean industry, trade and transportation. The country also has a strong automobile industry.
Thais are considered fast learners and can be developed very quickly, while building up the facility in Thailand will bring Scania even closer to its customers in Asean, Asia and Oceania, he said.
Scania has its own assembly plant in Samut Prakan with an annual capacity of 600 units, covering buses and trucks.
The company reported yesterday it delivered 424 trucks last year, a record high and gain of 149.4% from 170 units sold in 2015.
Scania delivered only 91 buses.
Mr Dorski said the large commercial truck market increased by 8.5% to about 17,000 vehicles last year, while the bus market also rose by 9.7% to 1,600 vehicles. This was considered a recovery and a good sign for next year, he said.
Mr Dorski predicted Thailand's truck market will grow by 5-10% to 19,000-20,000 vehicles this year, boosted by accelerated government infrastructure investment, recovering exports, higher prices for certain crops, growing tourism, and higher intra-Asean trade.
Thailand's truck sales peaked at 31,000 units in 2013, 271 of which were sold by Scania, a 67% increase over the previous year.
Scania's truck sales fell to 240 in 2014 and 170 in 2015, with the overall Thai truck market falling to 21,000 units and 16,500 units, respectively.
The company predicts the bus market to stay flat at 1,600 vehicles in 2017 as competition has intensified the past several years, particularly for long-distance bus routes that have been directly affected by booming low-cost airlines.
Moreover, the Land Transport Department is decreasing the maximum allowable bus height from 4.3 metres to four metres to increase road safety. Most double-decker buses will become illegal under the new regulation.
Mr Dorski said Scania is committed to improving and enhancing its services to build up customer satisfaction. For example, the company recently opened its assistance centre 24 hours a day to allow customers to call for help with problems or ask for advice for free.
In January, Scania moved its service centre from Laem Chabang to the intersection of Highway No.7 and Route 331 (Sattahip, Chon Buri province and Phanom Sarakham, Chachoengsao province) because it is more convenient for customers.
In May 2017, Scania is scheduled to open a new service centre in Rayong in the Highway Route 36 (Pattaya-Rayong Bypass Road) area.