Nissan Diesel sees truck market facing obstacles

A gloomy truck market is predicted next year as total sales will shrink significantly due to the economic recession abroad and at home, predicts Pichit Ratchawong, executive vice-president of Nissan Diesel (Thailand) Co. Nationwide sales of trucks excluding pickups are expected to drop 19% to 14,100 units next year from 17,410 units expected to be sold in 2008, with 5,600 units with gross vehicle weight (GVW) under 15 tons and 8,500 units over 15 tons.

Many negative factors would contribute to the poor truck market next year. Most important are the global economic crisis and low economic growth in Thailand. Shrinking export growth and contraction of the construction industry will also reduce truck demand.

Strict financing terms for vehicle purchases by leasing or financing companies could also lower demand.

The enforcement of the Euro 3 emission standard next year will make vehicle production more expensive and the weakening baht against the Japanese yen will increase the cost of parts production, said Mr Pichit.

He forecast the automotive industry would drop around 20% next year due mainly to the decline in the pickup truck market.

Nissan Diesel sells only trucks with a gross vehicle weight of 15 tons or more and expects to finish with sales of 1,020 units this year, capturing 12% market share in its class.

Zero growth is expected for Nissan Diesel's truck sales next year, which is better than the overall truck market projection of a 19% drop.

Nissan Diesel plans to reduce expenses and inventory, preserve cashflow, improve skills and give training to its staff.

''If the government pursues a strong and stable economic policy, it will help restore confidence among the local private sector and foreign businessmen,'' said Mr Pichit.

Nissan Diesel runs branches at Rangsit, Nakhon Sawan and Chiang Mai and has 13 other dealers nationwide.

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