Chevy Thailand’s 1.6L Sonic Raises B-Segment Stakes

BANGKOK – With the B-segment Sonic already proving a success in Thailand, now the fifth-largest global car market, Chevrolet Thailand is adding a 1.6L engine to the existing 1.4L version.

The Sonic was launched with a 1.4L mill to cash in on the government’s first-time-buyer incentive scheme, which provided rebates of up to nearly $3,400 for purchases of cars with engines no larger than 1.5L.

The car is popular both within and outside of the scheme, with 14,858 units sold from its July 2012 launch to the end of May. In less than a year it has met Chevrolet Thailand’s expectation that it would become the auto maker’s best-selling passenger model.

The B-segment is one of the toughest nuts to crack here. Traditionally led by Toyota and Honda, it is Thailand’s biggest segment. Sedans are the predominant body style, although the hatchback version of the Sonic accounts for two-thirds of its sales.

Chevrolet Thailand expects the new 1.6L version will make up about 20% of Sonic sales.

The auto maker’s presence in Thailand’s B-segment has been limited until now, but the Sonic is resonating with buyers particularly because of its standout styling cues.

Broadening the car’s appeal by adding a larger engine is key for Chevrolet as it attempts to further connect its name with younger buyers, who traditionally haven’t been a close fit for the brand.

The Sonic 1.4L has been a success with younger customers in the traditionally conservative B-segment, a spokesman says. It clearly targets Generation Y, the under-35 demographic that is the holy grail of any auto maker.

Gustavo Colossi, Chevrolet Thailand vice president-sales, marketing and aftersales, calls the 1.6L model “an option for customers who want more high technology and more power from the Sonic.”

That offer means the new Sonic is the first General Motors model in Thailand to the auto maker’s “MyLink” system, which a spokesman describes as “an extension of the driver’s mobile phone.”

The Sonic 1.6L also gets two new standout paint finishes, orange and metallic white.

Most significantly, the new model’s engine can run on E85 biofuel. That enhances Chevrolet’s environmental credentials and makes the auto maker the first in Thailand to offer three models (the others are the Cruze and Captiva) with E85 options.

E85 introduction is in its early stages, as fewer than 100 stations nationwide sell the fuel. But the rollout is gathering pace because the price of the ethanol/gasoline blend is discounted by about one-third and there is a tax break for building E85 models.

With Thailand importing most of its oil, the government is promoting the use of ethanol-based fuels as a means of improving the country’s energy security. GM was one of the pioneers of ethanol-based fuels in South America, so it has the technology, experience and economies of scale at its fingertips.

A spokesman says the Sonic 1.6L E85 offers “a benefit in price, a benefit for the environment, less fuel and long-term technology that is sustainable.”

The 1.6L model will be built alongside the 1.4L version at GM Thailand’s Rayong factory and, like the existing model, will be exported to the Philippines and Indonesia. Other regional markets are likely to follow.

Both engines are sourced from Korea and the 1.6L adheres to the customary minimum 50% local-content mix.