"We expect Hino to remain the market leader over the coming years," said Yoshinori Noguchi, president of Hino (Thailand). "Our current market share is 36 per cent, and we hope to expand this to 39 per cent by 2009. We will do this by introducing new models and responding more efficiently to the needs of our customers."

Hino has been the leader in the commercial-vehicle market for the past three consecutive years. This year, it hopes to sell 8,200 units, a drop of 449 units from last year's figure. The main reasons for the sales slump include rising oil prices and political instability, which has delayed the government's mega-projects.

To boost its sales, Hino plans to focus primarily on after-sales service. It will provide a 24-hour roadside assistance service, so drivers will be able to call the nearest dealership if they encounter problems with their vehicles.

It will also launch new models in an effort to boost sales and will introduce what it calls "pop" parts. These are frequently replaced spare parts that will now be produced in Thailand and whose quality will be similar to the originals produced in Japan. This will allow Hino to provide cheaper parts and cut down on time taken for repairs.

Hino is also conducting driver-training courses that turn out safer and more fuel-conscious truck drivers. "The focus must be on lowering costs for our customers and increasing the value for money of their products. Last year, our driver-training programme trained 226 drivers. We see this figure continuing to rise," said Noguchi.

Hino is also Thailand's first commercial-vehicle company to allow its customers to buy an additional warranty package beyond the usual three years.

The company says more and more customers are demanding greater fuel economy from commercial vehicles, so it plans to test two alternative fuel technologies: natural-gas vehicles (NGVs) and diesel dual fuel (DDF).

NGV technology allows trucks to run on compressed natural gas. One problem with this is the limited size of onboard gas tanks, which restrict the vehicle's range. DDF technology, on the other hand, provides a mixture of diesel and compressed natural gas as a fuel, with more than 50 per cent natural gas. The beauty of this system is that when the natural gas runs out, the truck's engine will run happily on diesel alone.

Hino will start testing these alternative fuel technologies at the beginning of next year, with sales expected to begin later in the year.

As for production, the company has three factories in Thailand, in Samrong, Bang Phli and the Amata Nakorn Industrial Estate. The Amata Nakorn plant, which was established in 2004 at a cost of Bt2.5 billion, has an annual production capacity of 20,000 units.

However, current production is only half that. The additional capacity will be used only when exports begin to other Asean countries and Australia. Exports will commence when the local content of Hino trucks rises from its present level of about 35-40 per cent.

Vijo Varghese, The Nation