Toyota Thailand Looks to New-Gen Trucks to Maintain Market Traction

BANGKOK – Toyota Thailand unveils new versions of its Hilux pickup truck and Fortuner SUV to the global media at Impact Arena here this week.

Both vehicles are the fruits of the auto maker’s International Multipurpose Vehicle program, launched in 2004 to create an optimized manufacturing system and integrated supply chain for use both domestically and in the global markets.

'12 Hilux Vigo features Toyota's Diamond Tech engine management system.

For the last five years, the Hilux Vigo, as it is called in Thailand, has been the country’s best-selling vehicle, while the Fortuner has led the SUV category. The two vehicles also dominate exports. The Hilux is sold in 113 countries, Toyota says, and combined, the two models have notched more than 2.3 million deliveries to date.

The auto maker sold 165,000 Hilux Vigo pickups in Thailand last year, compared with the Isuzu D-Max (142,000) and Mitsubishi’s Triton (31,000). It’s a success story Toyota and its Thai subsidiary are striving to maintain, as Hilux Vigo and Fortuner sales are vital to the company’s bottom line.

Indeed the company says it is spending TB3 billion ($100 billion) to increase capacity of its Ban Pho plant 40% to meet local and export demand.

Toyota Thailand commands a 40% share of the local market, having built an unrivalled reputation for capable and reliable vehicles. But it is under pressure for the first time in years due to the production havoc caused by Japan’s March 11 earthquake and tsunami.

The vacuum has a string of major auto makers, from Japan to the U.S., eyeing a slice of the action in the local market and rolling out ever-more-sophisticated products.

Toyota has a wide reach. Development of the new-generation pickup and SUV involved the company’s manufacturing operations in Thailand, Japan, Australia and Taiwan – with suggestions in each region listened to closely.

Much thought has been put into keeping the global Hilux ahead of the game, and significantly, Toyota concluded the one-size-fits-all formula would not work this time around.

For the typical private Thai owner, for example, the truck serves as a daily driver over topography, but in South America it more often serves as a recreational vehicle challenged by steep hills.

New Fortuner SUV focused on luxury, style to distinguish it from Hilux.

Significantly, in Thailand – the world’s largest 1-ton pickup market – half the Hilux Vigo trucks purchased are for use as passenger vehicles. So the suspension was reworked in the new model to create a more comfortable ride.

“Comfort” is a key word stressed by officials during the media presentation. Some 45% of Thai-built Hilux pickups are destined for the domestic market, with a goal of hitting 50%.

Visually, the new model, to be called the Hilux Vigo Champ locally, gets a new front and detailed improvements to the sides and rear.

Kaoru Hosokawa, Toyota’s chief engineer in Japan on hand for the launch, says the truck’s front fascia conveys a “tough” but modern look, while the headlights offer a sporty touch. The sides have “powerful” styling conveying forward motion.

Cabin quality has been improved, as well, particularly with the new instrument cluster.

But the most-significant innovation is the adoption of Toyota’s new “Diamond Tech” system for engine management, a first for the pickup segment. This provides precise fuel-injection delivery in accordance with operating conditions detected by the 32-bit electronic control unit to improve fuel efficiency.

Smart fuel injectors with a “diamond-like” carbon coating improve the process, prevent soot buildup and extend the lifecycle of the injectors and the combustion system. The variable-nozzle turbocharger is controlled by the ECU to provide a flow of detailed information.

The new Hilux Vigo models are available with 2.5L and 3.0L diesel engines and 2.7L gasoline mills, while the transmissions have been refigured across the model versions.

The Fortuner’s arrival in the Thai market seven years ago represented a significant step forward. However, customers since then have grown more affluent, and the new model aims to “reflect the higher standing of customers in society,” Hosokawa says.

The objective was to sustain the SUV’s No.1 position in the segment, he notes, while improving its image with a focus on luxury and style. Another key project metric was to ensure the SUV was further distinguished from the Hilux Vigo, especially the interior.

Focusing on suspension improvements means better stability, ride and comfort, while a new underside wind deflector has improved high-speed steering. The new model also features a common-rail diesel engine.

There is a mild price premium for both the new pickup and SUV of about 10,000-20,000 baht ($332-$664), reflecting Toyota’s leading status in Thailand and confidence in the new products. The Vigo is priced at TB487,000-TB981,000 baht ($16,177-$32,586), based on whether the model features single, extended or dual-cab.

The Fortuner’s pricing ranges from TB1.1 million ($36,539) for the 2.5 2-wheel drive version to TB1.5 million ($49,826) for the 3.0L 4WD, and demand is expected to grow. The auto maker wants to expand the SUV’s production and is “studying the issues.”

In fact, all output capacity is on the increase. “To respond to rising demand, both in the domestic auto market and export, Toyota has boosted production capability in the Samrong plant,” Toyota Thailand President Kyoichi Tanada says. “Additionally, we plan to increase capability in the Ban Pho plant from September.”

The auto maker builds more than 45,000 pickup trucks and SUVs a month at the two plants.

Tanada tells the Bangkok Post Toyota will continue to have its affiliate in Indonesia produce Fortuners, even after the Ban Pho facility has been expanded. Some SUV production was shifted from Thailand to Indonesia earlier because the supply could not meet the domestic and overseas demand.

However, Toyota Thailand says it has no plans for additional infrastructure. Instead, it is looking at “factory efficiency” to cut build time per vehicle, as the auto maker presses towards its target of building 1 million vehicles annually.

– with Alan Harman