Mazda to expand Thai distribution

Tone succeeded David Grakul, who completed his term as the first managing director of Mazda's Thai unit after the Japanese automaker took over the business from the local distributor four years ago. "I have set a goal to achieve 10 per cent share of the Thai automobile market. In the short term, we will aim for five per cent and then look further," said Tone. The company's market share stood at two per cent last year although sales grew by 168 per cent over the four years that it had taken over distribution, to reach 10,374 vehicles. Mazda expects sales to rise 49 per cent to reach 15,500 vehicles this year. In strengthening its distribution strategy, the company will increase dealer outlets from 72 to 86 by the end of 2004. "Besides the increase in number, we are also focusing on improving the performance and quality of services," said Tone. According to a survey of the Thai vehicle market conducted by multinational research group JD Power, the Japanese manufacturer ranked second on sales satisfaction, and fourth on service satisfaction. "One of the major tasks is to train the sales personnel, particularly in the areas of product knowledge so that they can give clear explanations to the customers," said Tone. The company recently launched Mazda Tribute 2.3L, powered by its MZR 2.3 engine. Though tightlipped about marketing plans for the new entrant, Tone said: "We have received a very encouraging response from consumers." He acknowledged that competition was tough from other Japanese and American automakers but said his main concern was that Mazda did not have enough models for sale in the local market. He intends to address the issue soon by bringing in more models in a phased manner. Last year, Mazda sold 1.07 million vehicles worldwide, an increase of 14 per cent from 2002.