Buoyant GM speeds up on Chevrolet power

After setting up a distributorship in Thailand for more than 10 years, American auto-maker Chevrolet has already sold more than 100,000 vehicles here.

This year has meant a lot to Chevrolet, as it broke sales records four times during the first 11 months, achieving historic sales of 7,360 units in November. This has helped raise year-to-date sales during the first 11 months to 67,012 units, up 146 per cent compared to the corresponding period last year.

Chevrolet’s target in the Thai market is to achieve sales of 80,000 units in 2012, which is not too optimistic considering its performance this year. Chevrolet has also overtaken Ford as the leading American brand in the Thai auto market.

General Motors (GM) had spent as much as Bt40 billion in making Thailand its production and export base for the Asean and Asia-Pacific markets. The Chevrolet product line-up is rapidly expanding, too. After launching the Colorado pickup, it followed with the Trailblazer PPV and the Sonic sub-compact. At the recent Thailand International Motor Expo, it also showcased the Spin, which is a small sports utility vehicle made in Indonesia.

Thailand is not the only market that Chevrolet is eyeing to increase its presence. Apart from a 10-per cent share in Thailand, it is expected that when the Asean Economic Community (AEC) takes effect in 2015, Chevrolet will also be raising its market share in the 3-million-unit per year Asean region as well.

GM, through the Chevrolet brand, sold almost 80,000 vehicles in the Asean region during the first 11 months of 2012, and one of the strategies that enabled this growth is the swift expansion of the dealer network regionally.

Martin Apfel, president of GM Asean as well as Chevrolet Sales (Thailand), said the American brand is enjoying continuous growth. Sales in November were 8,439 units, equal to a 3-per-cent share in a market dominated by Japanese brands.

Meanwhile, Chevrolet recently opened its first official showroom and service centre in Laos – the new facility is among the largest in the region. It is also planning to launch the Sonic and Orlando in Malaysia in order to cover more segments.

In Laos, Chevrolet was able to raise its market share to 6 per cent during the first 5 months of marketing products. Next year it plans to open another showroom in Pakse, as well as introduce a mini showroom in Vientiane.

More showrooms and service centres are also planned for Luangprabang and Suvannakhet, and Chevrolet is also preparing to open its first showroom in Cambodia in February next year.

Participating in the Trailblazer caravan that crossed from Thailand to Laos and celebrated the official opening of the new showroom, GM’s strategy in Asean has become clearer.

The new Chevrolet dealership is operated by the Manignom Group, which is a major Laotian automotive group with revenues of more than $200 million per year.

Although Laos may be a new market, it is considered as one of the driving forces for Chevrolet to achieve sales records in this part of the world.

The new Chevrolet dealership is located in Vientiane and has been operational since July, with sales of 544 units. The best-selling model is the Thai-made Colorado pickup truck.

Suksamon Seehathep, the owner of the dealership as well as president and CEO of Manignom Group, said the performance and quality of Chevrolet vehicles in addition to the Group’s expertise in the automotive business for a long period of time will help the Chevrolet brand grow in Laos. “We invested more than $40 million (Bt1.2 billion) for this showroom and service centre, which carries the new Chevrolet identity,” he said.

The facility is built on a 5,000-square-metre plot (3,300sqm showroom, 750sqm office and 950sqm service centre). There are nine service bays and 10 technicians who are able to service more than 30 vehicles per day.

Suksamon said although the Laos auto market may be small in size, it is growing at a quick pace. Pickup trucks and SUVs are the most popular vehicles.

“We see a growing trend of Laotians purchasing brand new vehicles instead of used vehicles like in the past,” he added.

Along with marketing, the company is also participating in social events in order to establish contact with potential customers as well as increase awareness of the Chevrolet brand and its 101-year history.

Chevrolet models offered in Laos are the Spark, Sail, Cruze, Captiva and Colorado. Total sales in 2012 are expected to reach 750 units, while 2013 sales are expected to reach 1,100 units.

The Laotian auto market should reach 10,000-11,000 units in 2012 and 12,000-13,000 units in 2013, according to Suksamon. Hyundai, Toyota and Kia are the top three brands.

With new showrooms planned in Pakse, Luangprabang and Suvannakhet, Chevrolet hopes to raise market share from the present 6-7 per cent to 15-20 per cent within 2015, which means that it would also enter the top three positions as well.