Isuzu mulls Asean-bound large trucks

Isuzu Motors is studying the feasibility of exporting commercial trucks to Asean markets this year from its Thai operations.

According to Toshiaki Maekawa, president of Tri Petch Isuzu Sales, the local distributor of Isuzu trucks, the Japanese carmaker recently made the world debut of the new Thai-made Isuzu King of Trucks model.

The Tokyo-based parent company is considering f uture shipments of the truck to Indonesia, Vietnam and the Philippines.

The new truck model was developed by Isuzu’s R&D unit at the Isuzu Global CV Engineering Center in Thailand.

“The parent company established this new R&D unit in 2014 to take responsibility for new commercial vehicles for emerging markets, covering pickup trucks, passenger pickup vehicles (PPVs), big trucks and buses,” Mr Maekawa said.

“Isuzu’s operations in Thailand will be in charge of big-truck shipments from 2017 onwards, while the operations in Japan will be tasked with handling truck exports to other, developed countries in North America, Europe and Oceania.”

Isuzu Motors Co Thailand runs two plants in Samut Prakan and Chachoengsao with a yearly production capacity of 366,000 units, but shipments to more than 110 countries are entirely pickup trucks and PPVs.

Of total production capacity, big trucks represent 25,000-26,000 units a year, all bound for domestic markets.

Mr Maekawa said Isuzu plans to double its production of big trucks this year to cope with future exports, but he declined to reveal the investment budget.

Overall Isuzu exports are estimated at 160,000-170,000 units this year, including completely built-up and completely knocked-down vehicles.

Last year, Isuzu’s vehicle shipments fell by 11% to 160,000 units.

Mr Maekawa expects domestic sales of big trucks, including new models, to reach 13,000 units this year, compared with 12,000 in 2016, boosted by the government’s tax incentives given to local companies for investing in new commercial vehicles.

Thailand’s big-truck market is controlled by two Japanese makers, Isuzu (46%) and Hino (46%).

Isuzu expects its overall Thai sales to grow by 2% to 146,000 units this year as it maintains a market share of 18%.