Japanese commercial vehicle maker Isuzu Motors says it remains reluctant to apply for investment incentives under the Board of Investment's hybrid-electric vehicle scheme as a Dec 29 deadline looms, citing poor domestic demand for pickups.
Toshiaki Maekawa, president of Tri Petch Isuzu Sales, the local distributor of Isuzu trucks, said demand for hybrid pickups in the local market is a major concern for the parent company, making Isuzu question whether they are worth investing in.
"The main purpose of pickup trucks is to load things for transport or other commercial usage, while the hybrid platform is designed for passenger cars," Mr Maekawa said. "Moreover, the excise tax discount for hybrid vehicles is only 2% for pickup trucks, which Isuzu thinks may not be worth the investment."
He said passenger pickup vehicles (PPVs) could be better suited to the hybrid platform than pickups: PPVs are used for non-commercial purposes, while pickups need more endurance and a stronger engine for commercial transport.
Isuzu has plenty of electric vehicles (EVs) to offer Thai motorists, but production depends on the readiness of the local market and demand, Mr Maekawa said.
"We are still studying the feasibility in the Thai market for EVs on any platform," he said. "In the past, alternative energy such as natural gas and LPG (liquefied petroleum gas) have not been successful in the pickup segment, so Isuzu has to be careful in considering hybrid vehicles."
Turning to Isuzu's sales volume in 2017, vice-president Hiroyasu Sato said prospects have improved to 154,000 units, up from the previous prediction of 146,000, thanks to improvements in the overall car market this year.
The pickup segment in particular is targeted to increase by 8.3% to 130,000 units in 2017. The remaining volume is made up of 10,000 PPVs and 14,000 heavy-duty and mid-sized trucks.
Isuzu ranks second in the market with a 19.1% market share, trailing Toyota in terms of total sales, but it has the top market share in the pickup truck segment at 37.9%.
Mr Sato said he expects the overall car market to remain in the range of 840,000-850,000 units sold this year, compared with 768,788 units last year.
The pickup truck market is projected to grow by 7-8% to 350,000-360,000 units sold this year.
Bangkok-based Isuzu Motors International Operations Thailand operates in shipment from Thailand and expects to export about 155,000 units in 2017, both completely built-up and completely knocked-down, down negligibly from last year's figure of 160,000, which was an 11% decline from 2015.
Mr Maekawa said Isuzu is experiencing negative momentum from the country's vehicle exports because of weak demand in the Middle East, a core pickup destination.
"Saudi Arabia, where Isuzu controls an 80% market share, remains murky with 5,000 units shipped, down sharply from 25,000 in the past," he said. "Despite the improving Middle East situation, we have yet to see any positive momentum."
Mr Maekawa said Australia is a growing market for Isuzu exports, with 27,000 units shipped this year, constituting a market share of 10%.
The United Kingdom is second with 6,000 units exported.