Isuzu has bucked the trend in Germany's niche pickup truck segment by posting growth in sales, despite the general slump afflicting Europe's pickup market.

Germany is a key market in Europe where the Japanese commercial vehicle specialist, a relative new kid on the block, is keen to shed that tag and take on the mainstream competition.

Tri Petch Isuzu Sales (TPIS), the parent company which makes the pickups in Thailand, began its European foray in 2003, operating there as Isuzu Automotive Europe (IAE), and in the seven years since has succeeded in penetrating 31 markets on the continent using an expertise perfected from its experience gained in Thailand.

IAE oversees sales of Isuzu pickups in Europe. Isuzu Sales Deutschland (ISD) is a subsidiary of IAE in charge of operations in Germany, Austria and the Czech Republic. Isuzu's most recent market penetrations in Europe include the Czech Republic, Poland, Slovakia, Hungary, Romania and Hungary.

Buoyed by the performance, Toshiaki Maekawa, managing director and chief operating officer of IAE, predicts sales to grow by 118% over the next five years, which would take its haul to more than 31,000 units per year and increase its share of the market to 20%.

IAE was set up with a registered capital of €2.4 million (US$ 3.3 million). Isuzu Motors (Japan) and Mitsubishi hold an equal 50% in the company.

Maekawa, a former TPIS hand, said that IAE's proximity to Frankfurt, its airport and financial institutions gives his firm an ideal platform from which to mount a concerted sales and marketing pitch across Europe.

Pickup makers had their best haul in Europe in 2007 when 160,000 units were sold. Thereafter, sales suffered as a result of economic recession. Last year 60,304 units were sold January through August, and 59,142 units in the same period this year, a decline of 1.9%.

But in spite of this general slump, Germany-based IAE registered sales of 9,346 units in the first eight months this year, an increase of 29.5% compared to the same period last year when it sold 7,217 units across continental Europe.

The market split is (as of August): Mitsubishi 23.5%, Toyota 22.8%, Nissan 20.8%, Isuzu 16.1%, Ford 9.3%, Mazda 2.8%, Ssangyong 2.1% and Tata 1.6%. However, the cumulative market share of Isuzu stands at 15.8%, up 3.8% from last year in the same period.

And for the whole of this year IAE has set itself a target of 14,200 units for 13.8% market share. A key reason behind Isuzu's ability to buck the trend is optimisation of output from its dealerships.

Plan-do-see

Koichiro Yoshida, IAE's sales and marketing manager, labelled Isuzu's method as a "plan-do-see" meetings at which first and second-quarter sales performances and marketing strategies are updated regularly along with support policies. "In the third quarter we review the first half and agree on what support is needed before revising our sales target. The key factors are communication with dealerships and our relationships with distribution network," said Yoshida.

The next step, which Yoshida termed as "motivation up", is to inspire and motivate the market through sales training, disseminating information about Isuzu products and their fuel efficiency using methods perfected at TPIS, such as driving from Bangkok to Singapore on just a single tank of diesel fuel.

Named after the Isuzu Rodeo 4WD, Rodeology is a motivational strategy designed to expand market base by involving sales staff in direct off-road driving experience. In addition, there are rally competitions, hot laps in Isuzu D-Max pickups and trips to Thailand for Isuzu distributors where they can actually see Isuzu D-Max pickups on the road.

"Our market share and sales rose immediately in the aftermath of the rally competitions," said Yoshida. "The knowledge and experience from Thailand are applied to all the 31 European markets. It is a very important step. Each market has its own thinking, culture and driving habits which is why we need to adjust accordingly."

Udo Emmerling, COO and managing director of ISD, said the pickup market in Germany peaked at 15,000 units in 2003 but dropped to 8,068 units in 2005, before picking up - 12,193 units in 2006, 12,582 (2007), 11,329 (2008) - and slumped again last year to 7,009 units. On the positive side, market recovery is evident based on sales of 4,699 units in the first eight months this year, up 3.1% from 4,556 units sold in 2009 during the same period.

Isuzu sold 503 units during this time and ranked fourth in Germany, but Emmerling cautioned that its rival, the Volkswagen Amarok - which sold 376 units - is a force to be reckoned with because of its vast distribution network.