WAE aims to make Isuzu big in Hungary

Managing director Andrew Prest said Hungary was one of the last European markets in which the Japanese auto-maker had launched its pickups, in late 2010. 

Most of Isuzu’s pickups on sale in Hungary and more than 100 other markets around the world are manufactured at the company’s facilities in Thailand. Isuzu Motors shifted the manufacturing centre for its D-Max pickups from Japan to the Kingdom in 2002.

“We represent Isuzu D-Max in the important pickup truck segment in Hungary, and expect to sell around 360 trucks this year, giving us a 14-per-cent share,” said Prest, adding that the company’s market share had risen from just 3 per cent in 2010 to about 10 per cent last year.

He said Hungary – one of the oldest countries in Europe, founded in 896AD – is in a strategic position at the centre of the continent, so its borders have expanded and shrunk many times in the past millennium. The country has a population of less than 10 million today. About 30 per cent of them live in Budapest, and around 50 per cent own cars.

“Motor vehicle production plays an ever-increasing role in Hungary with many major auto-makers, like Audi, Suzuki, Mercedes and General Motors, all having manufacturing facilities here,” said the managing director.

Hungary also has a strong agricultural sector, led by local meat products and wines that are exported all over the world. The Hungarian capital, meanwhile, is the sixth most visited destinations in Europe.

After several years of decline and austerity, the country could be one of the fastest-growing European economies this year, he said, adding that it had benefited from European Union membership via the provision of strong financial support for the development of many business sectors, such as hotels and manufacturing. 

“We [WAE] are part of the Wallis Group, a private trading company with annual revenue of 500 million euro [Bt20.74 billion]. The group has interests in various business sectors, namely manufacturing, real estate, electricity generating, financing and motor vehicle sales. 

“At the group level, we have retail facilities for selling and representing several vehicle brands, such as Isuzu, SsangYong, BMW, Mini, Opel, Maserati, Kia and Chevrolet. Auto sales contribute annual sales of about 130 million euro,” said Prest.

He said the auto market in Hungary was currently overheated due to a financing bubble.

Annual sales topped 230,000 units a decade ago, but the market crashed and sales fell 80 per cent to just 45,000 units in 2009, before starting a gradual recovery, he explained. 

While Hungary has the highest rate of value-added tax in Europe, pickups are generally exempted, making it a generally flourishing segment accounting for 3-4 per cent of vehicle registrations a year.

“The pickup truck market halved during the 2008 [financial] turbulence, but we are currently witnessing a strong recovery of the sector. State-subsidised, low-interest investment loans for businesses are driving factors for the growth in the sales of light commercial vehicles,” the MD said.

“We anticipate the total vehicle market in Hungary will reach about 70,000 units this year, up between 20 per cent and 30 per cent from last year. About 3-4 per cent of them will be pickup trucks. The number of pickup trucks in Hungary is projected to double by 2020,” Prest added.

The pickup market in Hungary grew by 46 per cent year on year during the first three quarters, while sales of Isuzu pickups increased by 80 per cent over the period. 

The retail price of Isuzu pickups in Hungary ranges from Bt820,000 for the lowest model to more than Bt1.1 million for the highest. These prices include customs duty of 10 per cent.

Prest added that Isuzu currently held third place in the LCV market behind Toyota and Ford, which have about 25 per cent each.

“We are ahead of Nissan, Volkswagen and Mitsubishi, which have 12 per cent, 8 per cent and 5-6 per cent of the market, respectively,” Prest said.

Isuzu is benefiting from increasing brand recognition, positive user feedback and a maturing dealer network. WAE has 15 dealers around the country responsible for selling Isuzu pickups.