Chevrolet Thailand will introduce a completely new product portfolio in the next four years to replace existing products and further raise brand awareness in Thailand, says president Stephen Carlisle.
The Colorado pickup and the Aveo, Optra and Lumina sedans will be included. Only the recently launched Captiva sport-utility vehicle (SUV) will remain unchanged.
“The next four years are very important to us, as this will be the period in which we will start replacing our products as they reach the end of their life cycle,” Carlisle said. “We are still considerably new to the market, and thus we are still learning what the market needs. We have sent our sales team to our research and development centre in South Korea, the better to understand the products we have worldwide. In order of importance, our first priority is the pickup, followed by the small sedan and then by larger sedans and SUVs. It is important that in the process of replacing our products, we will also focus on customer perception of the brand.”
Carlisle said it was also important to continue improving the dealer network and making sure that customers had high confidence in Chevrolet products. From internal surveys among Chevrolet customers, the company found the brand had been recommended to them by friends. Carlisle stated that word-of-mouth advertising was the best advertising the company could get.
He said it was important that customers realised Chevrolet spare parts were in fact priced similarly to those at Honda and Toyota. Previous executives of Chevrolet in Thailand had stated that the company would acquire a total market share of 10 percentage. Carlisle said that this figure was unlikely to be reached and that a more realistic figure would be 4-5 per cent.
Chevrolet recently held a Chevy “OK Day” that extended big promotions to customers, such as zero-interest schemes or no down payment. About 4,000 units were sold at the event, which ended on September 23, almost 200 units above the expected target. Carlisle said overall market signs were encouraging and that people were regaining confidence, especially now that the constitutional referendum had passed and an election date was set.
“Currently in Thailand, there are the tier-one sellers, which are Toyota, Honda and Isuzu,” Carlisle said. “The remaining players fall into tier two: Chevrolet, Nissan, Mitsubishi, Mazda, Ford and some others. Our target is eventually to move out of tier two. For now, however, we’ll focus on becoming the top player in tier two, though we are aware that this will take time. Market position is more important for us than market share, currently.”
As for new products, the next-generation pickup, which is due to be launched within the next three years, will be more visually distinctive than the Isuzu D-Max, a vehicle with which the current Colorado shares its platform.
Other products that are still being discussed are the eco-car.
“There are many trade-offs that come with a small vehicle, like safety and passenger space,” Carlisle said. “The important factor will be the price range, depending on the government’s tax policy. The eco-car, if sold in Thailand, will be a very low-margin product, so it must be considered very carefully.”
In the field of alternative fuel, Chevrolet is the first company to sell an original-equipment-manufacturer-fit vehicle that is compatible with compressed natural gas (CNG). The Optra CNG can go 100-150 kilometres on a full tank. Carlisle said the company was also considering other alternative fuels, such as E10 and E20.
“In the end, the infrastructure to provide the fuel at the right place must also exist. Only having the auto companies producing these cars will not help. Auto companies need to work with the government closely on this matter,” Carlisle said.
He added that Thailand, Indonesia and Malaysia were strategically important countries for GM. Products produced in the region are of world class, and there is competition for products worldwide. Carlisle did not mention any investment plans for the near future. He expects the total automotive market this year to be less than 600,000 units, with Chevrolet’s market share less than 6 per cent. Chevrolet also has certified second-hand Chevrolet dealerships, where every used vehicle passes a 100-point inspection. There are three such showrooms in Thailand, with plans to expand.
Source: Vijo Varghese, The Nation
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