Northern Mitsubishi Dealer accept the decline after ending of first-time car buyer campaign But forecast to recover in the latter half with keeping eyes on

Automotive Press Releases Friday May 17, 2013 09:34
Bangkok--17 May--Mitsubishi Motors

After ending of first-time car buyer campaign, the northern Mitsubishi dealers noticed the obviously decline of customer walk-in. Dealers need to adjust the strategic plan to approach the target customer and enhance the marketing activity no matter large or small provinces, they should maintain the sales volume with their keeping eyes on the situation for in-time adjusting countermeasure plan. Dealers also hope for the recovering of demand in the second half of the year.

Mr. Nobuyuki Murahashi - President of Mitsubishi Motors (Thailand) Co., Ltd. adverts to the northern sales situation after the first-time car buyer campaign "In 2012 Year (Jan-Dec), the car market in northern area was above 164,000 units, and the first quarter of 2013 (Jan-Mar) was about 45,000 units with mainly the delivery of first-time car buyer's booking. But comparing March vs. April in 2013, we found that northern area demand in March was about 17,400 units while April was about 13,600 units or decreasing 22%. Anyway, this decreasing ratio was lower than total market (nationwide) which decreased about 30%. Regarding our visiting for observation, many Mitsubishi dealers have estimated and predicted this slowdown therefore they have the plan-B to manage stock and initiate the proper activity to maintain the sales volume and create new customer with effectiveness, this reflect the professional vision of Mitsubishi dealers."

Vachiraporn Theeravanichayakul, MD of Phareyontrakarn Mitsu Co., Ltd., Mitsubishi dealer in Phare comments on the recently situation that " There was about 80% of first-time car buyer that receive the booking car, the remain 20% would like to delay the delivery because of the not-ready financial status, some was not approved from the financial institution. Regarding our data, we found that the first-time car buyer was majoring the university students or the first-jobbers which has the inconsistency income that leads to the postpone delivery. On the other hand, the pickup booking customer, mainly farmers, has the less postponement. In the first quarter of this year, the delivery started to be postponed by customers. In April, the sales volume was decline same as other provinces, but with the small size of market, our stock is not too high. Normally, Phare customers was the natives with the homely behavior, they will buy a car base on the functional and energy-saving basis. As the walk-in customers decline, we need to approach them instead and complete their need with our product. In general situation, Phareyontrakarn arranges the roadshow in fresh market or community market as well as sponsoring the government sector 'seminar letting them to get to know Mitsubishi car. In low demand situation as today, we have 2-part plan; first is "gain the new customer" data by increasing the number of roadshow activity or seminar sponsorship as well as collect prospect information for following up in the recovery situation. Second is 'maintain the existing customers' which has the trust and royalty in Mitsubishi car. We provide them the quality after-sales service and maintenance, and the program 'friend-get-friend' for service fee discount"

Concerning the current stock, Vacharin reply "I am not worry on stock at this moment because we have the effective systematic and teamwork. We still have the booking flow but not speedy like last year. This year the market is back to normal, we expect the other factor, for example agricultural or average income of Phare still in good condition and letting the car demand keep existing.

For Chiang Mai where the first-time car buyer applicant was almost 40,000 persons, second place after Bangkok, Tarin Tosangchai - Managing Director of Sangchai Motor Sales Co., Ltd. one of the Mitsubishi dealers in Chiang Mai accept that the first-time car buyer campaign affected to the car sales obviously, about 65-70% of the second half of last year came from this campaign. During the end year period, he noticed the slowdown of delivery for this group; the number of postponement and rejection from financial institute gradually increasing which lead him to reconsider the plan, " I decided to take risk by placing order to MMTh with under-number of booking. We noticed the low quality of booking customers, delay car acceptance and non-ready of financial status; these let us unconfident in the hurried applicants in the last month of campaign. Moreover, Government was not set the car delivery deadline so customer has the right to delay the acceptance date as their wish while dealer has to take the remaining stock. We ask our salesperson to follow up these cases every 15 days to keep their booking and relationship. Besides, the financial institute has to follow up this group too, in order to make the contract be active."

Comment on the current situation, Tarin said "The first half of 2013, demand was taken since end of last year, only few are remain. However, the demand should be recovered in the latter half. Chiang Mai is the high-growth city, considering on the transportation, real estate project both low-rise and high-rise as well as the large department store which at least 2 place will be opened in this year. Chiang Mai will resume as the potential area with quality demand for car market soon. What we should do now is adjust the marketing plan, enhance the activity and reach to target customer to get awareness and becomes customer's choice when they are ready to buy a new car"

Last but not least, Mr. Murahashi concluded on the northern area specification that "Northern of Thailand has the gradually and consistency economic growth, different from Northeastern which has dramatically growth. There are 17 provinces under Mitsubishi's north area of business, with 29 showrooms recently. We plan to increase more showrooms in the strategic Amphure in the near future. MMTh and dealers have to find the countermeasure plan for the decline demand of this beginning year with promotion campaign and event - roadshow. MMTh also expect the recovery in the second half of year 2013 and forecast that the northern area market will reach 200,000 units in few years."

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