TOKYO : UD Trucks Corporation, the Japanese manufacturer of trucks and special vehicles, is strengthening its product line-up in Thailand as it focuses more on emerging markets.
A worker assembles parts at UD Trucks’ Tokyo factory. Transport demand is declining in Japan but it is at record high in developing markets.
Kenneth Hagas, the vice-president for brand strategy and marketing at the Volvo Group-owned company, said it is looking to at least triple international sales within five years, with Africa, Asia and Latin America as its first targets.
Last year, 57% of UD's sales were outside Japan.
Its new model will be launched in Bangkok next month as the first vehicle developed outside Japan. The Quester, a heavy-duty truck, will be made in Thailand and China in the initial stages.
With a wide range of applications, from long haul and distribution to construction and mining, the model will officially be launched on Aug 26.
UD had 17.2% of Japan's heavy-duty vehicle segment last year.
As of last month, that figure had surged to more than 20% and is poised to grow, Mr Hagas said.
But Ekanat Suwintawong, the vice-president for vehicles and marketing in Thailand, said UD's share of the Thai market remains in single digits.
"Quester is the first UD truck developed specially for growth markets and the first product developed outside Japan," said Mr Hagas.
Transport demand is declining in Japan but it is higher than ever in developing markets, he said.
"Customers in growth markets might have to buy used or Chinese trucks but want to have efficient and modern trucks that are affordable with a payback period of usually two or three years," Mr Hagas said.
UD's main competitors are other Japanese manufacturers and low-cost companies from China and India.
The top five markets in terms of sales volume are Japan, Indonesia, South Africa, Malaysia and Australia, which together account for 77% of company exports.
UD was known as Nissan Diesel before it became part of Sweden's Volvo Group in 2007.
Volvo, the sole distributor of Volvo and UD trucks, recently announced a 5-billion-baht investment plan including 3 billion for expanding sales and service outlets.
The rest will be used to expand annual production capacity to 4,500 Volvo trucks and 20,000 UD trucks.
Thailand is the global production base for Volvo and UD trucks for export, especially those destined for Africa, Latin America and Asia excluding Japan.
Last year, 21,348 UD trucks were delivered worldwide, down from 22,753 in 2011.
Of these, 44% were sold in Japan, 28% in Southeast Asia, 17% in Africa, 4% in Oceania, 2% in North America, 1% in South America and 5% in other Asian markets. Only Southeast Asia saw an increase in sales.
The Thailand Automotive Institute said 19,994 trucks were sold in Thailand in the first five months of this year, up by 45.6% year-on-year, while overall vehicles sales totalled 634,777, up by 31%