Toyota expects Laos' strong economic growth to boost sales in 2017
Toyota expects Laos' strong economic growth to boost sales in 2017
Toyota dealers in Laos are optimistic their gross sales will reach targets more easily in 2017, thanks to support from the government's policy of thrift.
Last month Prime Minister Thongloun Sisoulith announced that the government would recall the state-owned expensive luxury cars such as BMW and Mercedes Benz which are currently driven by leaders. These would be sold to the public through a bidding process and replaced with more reasonably priced cars such as Toyota models.
Managing Director of Lao Toyota Service Co., Ltd. Mr Pasatxay Philaphandeth said yesterday This policy of thrift will yield positive benefits for both the government and car dealerships.
Referring to the Politburo's guidance, suitable vehicles for each leader have been clearly determined. Politburo members are entitled to drive a Toyota Camry 3.0, ministers are entitled to a Camry 2.5, and deputy ministers may drive a Camry 2.0.
In addition, other vehicles such as the SUV brands Landcruiser, Prado and Fortuner, as well as pick-up trucks, are expected to be provided appropriately to leaders at each level, according to Mr Thongloun.
Last year, various dealers suffered a decline in sales because of slow economic growth which result in a drop in purchasing power.
The socio-economic development plan for fiscal year 2015-16 projected that GDP would grow by not less than 7.5 percent, but in fact it reached only 6.9 percent, 0.6 percent lower than the plan approved by the National Assembly.
Mr Pasatxay said competition among the various vehicle models was normal, but Lao Toyota Service Co., Ltd.'s gross sales dropped by 3 percent with total sales of 3,900 units.
This year, the company will raise their sales target by 2 percent, aiming to sell 3,970 vehicles.
He was confident that socio-economic development would go in the right direction and meet the predicted target of 7 percent growth in 2017, saying many sectors were pursuing the right path. Various foreign projects and the Laos-China railway were under construction, which would all support the growth of automotive businesses.
Manager of sales and spare parts at Toyota Laothani Co. Ltd., another leading automotive dealership in Laos, Mr Kid Kongmaleung, told Vientiane Times yesterday the government's policy to curb extravagance was very good and he was confident it would lead to a better sales volume for his company this year.
He said that last year the company's distribution was not as good as in 2015 and sales dipped because of the economic slo wdown, which was a situation faced by all car dealers. In addition, there was strong competition from other brand names that were eating up a large share of the market.
This year, Toyota Laothani Co., Ltd.'s plan is to sell 200 units, the same as last year, but they have yet to see the plan drawn up by the Toyota Head Office in Thailand.
Mr Kid said he didn't know what headquarters had written in the plan.
Pick-up trucks such as the Toyota Revo are still popular in Laos and they were the highest selling vehicle last year.
About 30 percent of Toyota Laothani Co., Ltd.'s customers are government bodies and development projects, followed by the banking sector and individuals.
Companies are offering several options in a bid to boost sales and encourage customers to buy vehicles, such as the down payment system.
