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Toyota eyes 10 percent sales growth in Laos
Toyota Motors Thailand Company expects a 10 percent increase in sales of its vehicles in Laos this year despite strong competition from Korean and Chinese rivals, according to a top company official.
“This year we expect to sell more than 6,000 units in Laos, about a 10 percent increase compared to the previous year,” company Vice President Mr Sitachai Jeeratunyaskul said at a ceremony to unveil two new Toyota vehicles held in Vientiane last week.
He said that the increase in sales is due to the continuing popularity of Toyota vehicles amongst Lao people, despite the inflow of cheaper Korean and Chinese produced vehicles into the Lao auto market.
“We sold about 5,800 units last year,” he said, adding that the new Toyota Champ and Fortuner SUV would provide a boost to sales.
Mr Sitachai said that the company is not concerned about the growing number of Chinese and Korean brand vehicles because Lao people prefer to purchase utility vehicles, a type of car that Chinese and Korean auto manufacturers are unable to match Toyota's standards in terms of quality.
He admitted that Chinese and Korean produced sedans outsell Toyota brands in Laos, adding that this is mainly because they are cheaper and thus more affordable for middle income earners.
Toyota Motors Thailand plans to launch an advertising campaign on television and in the print media in the hope of boosting sales amid rising competition in the Lao auto market.
The auto market in Laos has boomed over the past few years due to strong economic growth. According to the Ministry of Planning and Investment, imports of vehicles increased by more than 20 percent in 2010 and the number of cars and motorbikes in Laos has reached 1 million.
The Lao government has decided to increase excise tax rates on cars but lower rates on motorbikes, starting in October. The move is an effort to reduce car numbers in the country and encourage people to use more fuel efficient modes of transport.
The government lowered excise tax rates on motorbikes because the vehicles consume less fuel than cars and to make them more affordable to low income earners.
vientiane times
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