MAN expands to deal with pandemic

Germany-based MAN Truck & Bus Thailand has encountered a rough patch, with weak bus and truck sales in the Thai market during the pandemic, but remains optimistic about its future business here.

The outbreak has dealt a blow to the Munich-based company, which recorded a 20% dive in bus sales because of the tourism contraction, while truck sales fell by 28% because of lockdown measures that affected transport.

According to MAN, new bus registrations with the Land Transport Department have decreased since early 2020 by 62%, from 1,090 vehicles last year. Truck registrations went down by 20%, from 18,000 vehicles last year.

Christian Schuf, head of the company’s sales and product unit in AsiaPacific, said his company maintains its plan to expand its market in Thailand, even as the pandemic lays waste to logistics activities.

“We still see Thailand as a market with potential for our business expansion because it is geographically in the centre of Asean,” he said.

Mr Schuf oversees the bus business in the region.

Jakkrapong Santirat, the country head who oversees truck sales, said MAN will continue to push ahead with marketing plans next year by promoting products and increasing the number of

showrooms and dealers.

MAN set a target to sell at least 50 buses and 120 trucks in 2021.

The company expects to rack up 800 million baht next year.

He declined to give the sales figures for this year.

For the next 3-5 years, the company will increase its showroom numbers to 10.

However, Mr Jakkrapong said, whether MAN can achieve its targets

will depend on how the pandemic proceeds going forward.

Though the company has business expansion projects in the pipeline, there are no plans to set up a factory in Thailand. MAN will continue to import all products from Munich.

There are two major bus and truck suppliers in Thailand. Japanese firms dominate the business with up to 95% of market share, leaving the rest to European companies.