Munich-based MAN Truck & Bus will step up its marketing and sales in Thailand this year, now that Hong Kong-listed Tan Chong Group is licensed to distribute and service the company's commercial vehicles in Thailand.

The company will shortly introduce India-made trucks there, while buses will be imported from Germany.

MAN plans to enhance its brand and increase sales to cash in on market growth in Thailand and the region.

After MAN Truck & Bus Asia Pacific was established in Bangkok in 2007 as its regional operating headquarters, MAN started seeking business partners for each country in the region. Tan Chong was chosen for Thailand after nearly two years of negotiations due to its experience and local manufacturing facilities.

MAN entered the Thai market 16 years ago with MAN Truck and Bus Concessionaires Thailand owned by the Intharaphuvasak family. The former MAN distributor sold only 25 buses over the past two years.

The steep import tax of 40% meant MAN trucks were not competitive in Thailand, as locally assembled trucks are subject to only a 10% duty.

Tan Chong established MAN Commercial Vehicles Thailand (MCVT) with an initial registered capital of 10 million baht (US$ 332,600) to import and assemble MAN trucks and buses in Thailand.

Mr. Pichit Rachawong, MCVT's general manager, said his company plans to sell 200 trucks and buses this year, 400 units next year and 800 units in 2014.

CBUs from India

MAN trucks with a 6.9-litre engine and under 300 horsepower will be imported from India, where MAN has a factory. The chassis can be modified to fit a mixer, dump or cargo truck.

"We are confident of achieving our sales targets each year as our products are competitive with those offered by Japanese competitors," said Mr. Pichit.

MAN tractor trucks will be 10% more expensive than Japanese brands, down from 35% more expensive after MAN supported MCVT. European competitors offer no tractor trucks in the same segment as MAN in the Thai market.

MAN buses imported from Germany will be available locally this year.

Assembly plans

MCVT will start assembling MAN trucks and buses in 2013 using the facilities of Tan Chong-owned Mitsubishi Fuso at Lat Krabang in Bangkok. MCVT will buy special tools to upgrade the line at the plant.

The plant, which has annual capacity of 7,000 units, currently builds Fuso trucks.

Mr. Pichit said Thailand will be MAN's regional production hub to take advantage of the expected ASEAN single market in 2015.