Suzuki to focus on food truck demand
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Suzuki to focus on food truck demand

Two Angels Tacos is on its business in Thong Lor area. (Bangkok Post file photo)
Two Angels Tacos is on its business in Thong Lor area. (Bangkok Post file photo)

Suzuki Motor (Thailand) and United Motors Co, formerly DFSK Thailand, the maker of China's Dongfeng vehicles, are tapping food trucks to capitalise on growing demand from small and medium-sized enterprises (SMEs).

According to Wallop Treererkngam, sales and marketing director at Suzuki Motor (Thailand), Suzuki is keen to jump on the bandwagon of the growing food truck market.

The company has set its sights on increasing food truck sales to 1,500 units this year, representing half of its mini truck sales target of 3,000.

Suzuki last year sold just 100 food trucks.

Mr Wallop said Suzuki will run a pop-up event, Suzuki Carry Food Truck Fest, in Bangkok and four provinces -- Nakhon Sawan, Nakhon Ratchasima, Rayong and Ayutthaya -- through August to bring food truck owners together.

Suzuki is also teaming up with Kiatnakin Bank to offer hire-purchase loans for mini trucks, including decorating expenses.

"We have to adjust our business strategy to deal with the market conditions and deliver what the customers need," said Mr Wallop.

Thailand's overall small truck market reached 10,000 units in annual sales during 2012-13, although that figure declined to 5,917 in 2014.

Last year, the market fell by 15% to 5,061 small trucks because of the overcast automotive outlook in the country.

Suzuki controlled a giant 65% share of the mini truck market that year, with DFSK taking 23%.

Pitaya Tanadamrongsak, managing director of United Motors, said the company had found room for food truck growth over the next several years, particularly in Greater Bangkok, due to the number of outdoor flea markets.

Moreover, pop-up lifestyle markets have become more popular in metropolitan areas, he added.

"Under the current economic conditions, start-up SMEs are interested in running their businesses in the food trucks due to their affordability," Mr Pitaya said.

Most food trucks are modified from mini trucks for commercial purposes. Sales of this market are projected at 2,500 units this year, up 25% from a year earlier.

United Motors has produced complete food trucks over the past several years with prices of 418,000 and 458,000 baht -- equivalent to the prices of general mini trucks, although buyers may need to spend additional money on customisations.

The company also offers a hire-purchase loan package through a partnership with Thanachart Bank.

Mr Pitaya said the company expects to sell 1,200 small trucks this year, 50% of which will be food trucks.

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