Market players race for bigger share in truck market

German-backed Mercedes Benz Vietnam (MBV) has recently launched an expensive campaign to promote the Mitsubishi Fuso Canter.

Customers buying Canter branded light trucks are entitled to raft of incentives at Fuso Canter service centres, such as free technical checks and a 20% discount on components.

Nguyen Duy Doan, a senior executive of MBV, said customers would be delighted at the best-of-class service standards being offered at affordable prices.

The move mirrors MBV’s growing interest into bolstering their market share in the light truck segment which was previously deemed to be the advantage of local firms.

Before falling into the hand of Germany’s Daimler AG, the parent company of MBV, the Mitsubishi Fuso light truck brand were only available in Vietnam in four versions.

Despite praise for their durability and energy efficiency, MBV only sold 761 Fuso trucks in 2013.

Sales figures for 2014 saw little improvements during a year characterised by transfer of the business from Mitsubishi to Mercedes Benz, but MBV expects a break-through in Fuso truck sales this year, according to Doan.

After 20 years’ experience in the Vietnamese market, MBV’s efforts to boost their sales of light trucks at this point in time is deemed a smart move as many Canter truck customers are looking to modernise their vehicles and grapple with government regulations intended to cut down on overloading.

In the light truck segment, Fuso truck’s main  rivals are imported trucks from the Republic of Korea and China, as well as locally-produced alternatives.

The Truong Hai Auto Corporation (THACO), currently Vietnam’s leading truck supplier, last year sold 20,500 vehicles, with more than 95% of them being light and medium-range trucks, accounting for half of the country’s total light and medium truck market share.

According to THACO sales director Mai Phuoc Nghe, trucks have been selling well because of more stringent vehicle quality checks.

As the government ratchets up check on overloaded vehicles, transport firms need more trucks to serve customers.

This year, THACO aims to sell 35,000 trucks, 90% of which are likely to be less than eight tonnes in weight, Nghe said.

“Our sales expansion plan is rooted on good supply preparations, and our products match current regulations on truck loads, so the products are selling well,” said Nghe.

THACO operates an expensive network of 70 sales dealers nationwide, and its diverse trucks benefit from a 40% localisation rate.

Lower-cost Chinese vehicles, have by contrast reported modest sales due to poor post-sale services on offer and difficulties in finding replacement components.