Ford attempts to boost pick-up sales

The producer of Ford vehicles in Asia will attempt to increase its share of the market in Laos by increasing marketing and targeting consumers who need all-terrain vehicles.

RM Asia Group managing director Kevin Whitcraft yesterday said 20 percent of pick-ups sold in Laos were made by Ford and the company hoped to increase this to 30 percent by 2010.

Ford says the pick-up is its best selling vehicle in Laos but, according to its own estimates, Toyota currently holds 68 percent of the market for pick-ups, Isuzu 5 percent, Mitsubishi 4 percent and Nissan 3 percent.

Mr Whitcraft said the main buyers of pick-up vehicles were operators of major industries including mining and hydropower, and also government rural development projects because these sectors needed strong vehicles capable of driving in poor conditions .

Mr Houmphan Saiyalath is the marketing manager of Lao Ford City in Vientiane .

He said companies accounted for 90 percent of pick-up sales, as very few individuals purchased this type of vehicle. Ford hopes to target individuals in an upcoming marketing campaign to make pick-ups more attractive to them.

Ford Lao City sold 100 Ford vehicles in 2006 and this increased to 350 in 2007. The company expects to sell 450 vehicles in 2008.

Mr Houmphan said Ford planned to expand its showrooms into several major Lao provinces including Savannakhet in the near future.

The company will cooperate with mechanics around the country to sell spare parts for Ford vehicles, because it is currently difficult to obtain these in Laos .

“We will deliver Ford spare parts to shop owners and attach Ford logo signs to the shops so customers know where to get the parts they need to repair their vehicles,” he said.

Mr Houmphan also said the company would offer special training for mechanics around the country to teach them how to fix Ford vehicles.

“After training, the mechanic will gain a certificate from the company so they can show it to their customers,” he said.

At the end of this year, Ford will introduce a sedan into the Lao market, because it believes Lao people can afford the luxury car.

Mr Whitcraft was visiting Laos this week from his base in Bangkok to gather more information about the vehicle market in the country.

Although the Lao market has potential, Mr Whitcraft said the company would not establish a Ford vehicle assembly plant in Laos in the foreseeable future.

By Ekaphone
(Latest Update May 08, 2008)