Volvo introduces new bus chassis as tourism surges
Swedish truck and bus maker Volvo Group Thailand is keen on marketing its bus model locally to take advantage of the continuous growth in the country’s tourism sector.
Yesterday the company introduced Volvo’s bus chassis, the B8R, to the Thai market.
The B8R is equipped with an eight-litre engine, compatible with the Euro 3 standard. The chassis is assembled at Volvo’s manufacturing facility, run by Thai-Swedish Assembly Co in Samut Prakan.
Dechchai Kulkarineetham, general manager for Volvo Buses, said the new B8R replaces the former model, the B7R, which recorded sales of 500 units over the past five years.
“Volvo is confident the Thai market will respond very well to the new chassis. Our customers are mainly public bus and travel coach operators such as Cherdchai Tour, CRV Transport and Thanatwit Travel Group,” said Mr Dechchai.
Bus operators normally buy bus chassis with a length of 10-12 metres, then put together the bus body by themselves as well as decorate interiors, he said.
Mr Dechchai forecasts total new bus registrations in Thailand will stay above 1,200 units in 2018, while Volvo expects to sell 200 bus chassis annually.
Last year the country’s bus market dropped by 15.9% to 1,240 units, but Volvo posted 225 units sold, up sharply by 174%.
The local market is controlled mainly by Chinese Sunlong, with a market share at 48%, while Volvo came in second at 18%, according to registrations at the Land Transport Department.
Swedish peer Scania has a market share of 11%, ranking third.
In Asia-Pacific, Volvo sold 1,500 bus chassis units in 2017, led by Australia, Hong Kong, Singapore and Thailand.
David Mead, vice-president for Volvo Buses in Asia-Pacific, said the assembly plant in Thailand is focusing only on the domestic market, but Volvo is studying the feasibility of exporting the bus chassis to Myanmar.
Kamlarp Sirikittiwatn, president of Volvo Group Thailand, said the local economic sentiment is expected to beef up the bus and truck market in 2018.
Thanks to the government speeding up infrastructure projects across the country, GDP is projected to grow 4.2%, while the tourism sector is expected to draw some 38.2 million visitors this year, up by 8%, generating 2.05 trillion baht in revenue, an increase of 12.6%.
For the local truck market, Mr Kamlarp forecasts the heavy-duty truck and medium-duty truck sectors will grow by 5% to 17,100 and 7,670 units, respectively.
Volvo’s truck models have proven to be viable in Thailand, with 356 trucks for the Volvo brand and 895 units for the UD brand in 2017.
UD Trucks, formerly known as Nissan Diesel, was founded in Japan in 1935 before becoming part of Volvo in 2007. Last year, UD ranked third in the medium-duty truck segment after Japanese peers Isuzu and Hino.
He said Thailand is an important market for the parent firm.