UD trucks target 15% market share
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UD trucks target 15% market share

The manufacturer of UD trucks aims for a market share of at least 15% in the heavy-duty truck segment in Thailand, similar to its position before it disappeared from the market three years ago.

"We could not say exactly when UD trucks would achieve this but it was our ambition," said Jacques Michel, president of Volvo Group Thailand, also the sole manufacturer and distributor of UD trucks in Thailand.

He believes the heavy truck market in Thailand will be at least 12,000 units, the same level as last year, given the projected economic growth in 2012.

UD trucks were no longer built and distributed in the Thai market by Nissan Diesel Thailand, a wholly owned subsidiary of Hong Kong-listed Tan Chong, after it started legal proceedings against AB Volvo of Sweden.

In the filing submitted to a Thai court, Tan Chong said AB Volvo, through its 100%-owned Nissan Diesel Motor of Japan, breached various terms of distribution and technical assistance agreements dated Dec 27, 2002, claiming compensation for damages of HK$2.64 billion.

Tan Chong said it later settled the legal proceedings in Thailand with AB Volvo by entering settlement agreements in September 2011.

Volvo Group Thailand, wholly owned by AB Volvo, fully assumed ownership and management of UD trucks in Thailand late last year.

"We have worked hard since then to relaunch the UD truck brand in Thailand and get ready for its spare parts and services," said Mr Michel.

He said UD genuine parts for all existing models are now sold at the UD truck showrooms nationwide with several more outlets to be soon opened.

There are currently more than 7,000 UD trucks in use in Thailand, 50% of which remain loyal to the UD brand.

Volvo Group Thailand will use the existing five branches to sell and service UD trucks and plans to open 10 more outlets in all parts of Thailand over the next 12 months, two of which will be privately owned.

The company plans to open the first new showroom and workshop after fully taking over the UD truck operations in Khon Kaen in June.

To date, Volvo Group Thailand has yet to begin sales of new models of UD truck but confirms its readiness to do so soon.

While waiting for the new UD truck models, Volvo Group Thailand will distribute the existing CWM model in the Thai market this year, ranging from truck tractors, rigid trucks and truck mixers.

The CMW model will be initially assembled in the Tan Chong-owned assembly plant in Lat Krabang, Bangkok, where Fuso trucks and other brands are being built.

After completing the expansion of Volvo-owned Thai Swedish Assembly (TSA)'s plant on Bang Na-Trat Road, UD trucks will be assembled there in 2013.

Volvo Group Thailand will invest four billion baht in Thailand, to be split equally for buying and expanding TSA's plant and for upgrading the existing branches and opening the new outlets.

The capacity of TSA's plant will be expanded by 10 times to 20,000 units per year to produce both Volvo and UD trucks, 80% of which will be the UD brand.

Mr Michel said he could not confirm when TSA's plant will run at its full capacity but said its output will be slated for both domestic and export markets.

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