How the city pickup market can grow

THURSDAY, NOVEMBER 22, 2012
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Personally, I still feel that the pickup truck is still the most suitable type of vehicle in a developing country like Thailand.

 

This is because most developing nations usually have poor road surfaces, which make pickup trucks and sport utility vehicles (SUVs) more suitable than passenger cars. 
However, SUVs are pricey and most people in the country are unable to afford them. 
Although the growth rate of the pickup market has dropped dramatically, that may be due to the larger number of passenger cars choices in the market as well as the variety of fuels that can be chosen. 
Apart from two doors, four doors and five doors, passenger cars also come with a range of power sources -- gasoline, ethanol, CNG, LPG, hybrid and electric. But pickup trucks in Thailand are powered by diesel engines, and only a few come with gasoline and CNG compatible engines. 
But if we look carefully at the pickup truck, we will see many variations as well. You have the standard cab for pure commercial purposes, and the space cab, double cab, two-wheel-drive, four-wheel-drive and the PPV (Pickup Passenger Car). 
Although the growth of pickups may have slowed down, certain types of the vehicle have been enjoying interestingly high growth. An example is the double-cab pickup (both 2wd and 4wd) that saw sales surge during the past year. PPVs of every brand also enjoyed increased sales last year. And if we look deeper, we’ll find that the increase has taken place in city areas, which is considered the stronghold of passenger cars. 
This shows that the pickup still has a lot of opportunities. If auto companies are able to break into the city market, they will have a high growth opportunity. At the same time they must also actively defend the pickup’s main market in the provinces. 
Don’t forget that competition among auto brands these days has forced retailers to keep crossing borders. Brands that have only passenger cars are trying to promote their vehicles in upcountry markets as they see that the infrastructure has improved, with new roads being built every day. The last government also had a “Dirtless Road” project, which allowed passenger cars to be more widely used. 
Meanwhile, a bit of the old lifestyle in the agricultural sector still remains. Farmers are now modernised and have less reason to use a pickup. They do not need a truck to carry crops, relying on integrated commercial services instead. They feel that passenger cars have more appealing designs and owning one would bring much pride. This is why carmakers can penetrate the pickup market. 
Pickup brands must try to protect their original market by capitalising on the consumer’s familiarity with the vehicles as well as technology and dealers in the area. Knowing the dealer is one of the strong points in selling vehicles in provincial areas. 
In penetrating markets in major cities, pickups must have a better image that gives pride of ownership so that owners don’t feel they’re second-class citizens. 
This feeling of pride can be created by using the right marketing tactics, while the appearance of the pickup must be modern and stylish as well as emotional. It must also be able to make the owner experience the capabilities and performance of the pickup that is superior to passenger cars at every price level. 
To do this, pickup manufacturers must create marketing events that allow target customers and consumers in general to see the pickup using its full capability. It could also be compared with a high-priced SUV, and the explanation would be that pickups have almost the same level of capability as SUVs but are much cheaper, while maintenance costs are much lower. 
Lastly, if pickup makers want to expand into city markets, they need to build a vehicle that is comfortable and offers ride quality that is as good as a passenger car. A good example is the PPV, which is highly popular with city-dwellers. Or they may offer other derivatives of the pickup for city folks. 
If pickup manufacturers are able to do what I suggest, I believe the pickup market in the future will be positively different than what it is today. 
In other words, if the pickup can be turned into more than just a simple pickup, it will have a better chance for growth in Thai and global markets.