An interesting article in today's Bangkok Post:
Ducati feels the heat from fierce big-bike competition
Ducati feels the heat from fierce big-bike competition
Ducatisti Co, the authorised importer and distributor of Italy's Ducati motorcycles, expects slower sales growth this year, citing increased competition in Thailand's big-bike market.
Managing director ML Nathasit Diskul said the competition in the country's big-bike market is heating up, with many players from both Western and Japanese brands taking part.
More importantly, lower import tariffs under the Japan-Thailand EconomicPartnership Agreement (JTEPA), which are set to drop to nothing by year-end, make retail prices for Japanese brands more affordable.
The JTEPAhas entailed cutting the 30% import tariff on big bikes and their parts by five percentage points a year until they are completely eliminated by the end of 2017.
"Thai motorists can enjoy this advantage, with more choices of big bikes," he said. "I understand this is normal in a business cycle, but I still believe Ducati can manage to recover its sales if the company can adjust itself."
Last year,Ducati reported its sales in Thailand dropped sharply by 48.2% to 1,553 units, marking the first contraction for Ducatisti in 13 years.
Since being appointed by the Bologna-based firm in 2003,Ducatisti had seen its sales grow sharply since 2012, with 1,255 motorcycles sold in the Thai market that year, up from 270 units in 2011.
Later in 2013, Ducati sales rose by 88.6% to 2,367 units before surging to 2,772 units sold in 2014.
Ducatisti registered a record high of 2,998 units sold in 2015,up 8.2%.
MLNathasit said with Ducatisti focusing more on introducing new models locally.
The company also plans to reduce its delivery time to Thai buyers from six to seven months to only one to two months.
Ducati plans more attractive pricing for spare parts after Ducatisti announced last year it would give a special 20% discount on related-products.
In addition, transport of parts to its 13Ducati showrooms and service centres should be sped up to less than seven days.
"We have 12,000Ducati's customers and the new marketing campaign and packages are scheduled to kick off in February," said MLNathasit.
The new 2-million-baht flagship store for Ducati merchandise is slated to open this month.
Its wholly-owned manufacturing arm Ducati Motor (Thailand) runs its assembly plant at Rayong's AmataC ity Industrial Estate
Managing director ML Nathasit Diskul said the competition in the country's big-bike market is heating up, with many players from both Western and Japanese brands taking part.
More importantly, lower import tariffs under the Japan-Thailand EconomicPartnership Agreement (JTEPA), which are set to drop to nothing by year-end, make retail prices for Japanese brands more affordable.
The JTEPAhas entailed cutting the 30% import tariff on big bikes and their parts by five percentage points a year until they are completely eliminated by the end of 2017.
"Thai motorists can enjoy this advantage, with more choices of big bikes," he said. "I understand this is normal in a business cycle, but I still believe Ducati can manage to recover its sales if the company can adjust itself."
Last year,Ducati reported its sales in Thailand dropped sharply by 48.2% to 1,553 units, marking the first contraction for Ducatisti in 13 years.
Since being appointed by the Bologna-based firm in 2003,Ducatisti had seen its sales grow sharply since 2012, with 1,255 motorcycles sold in the Thai market that year, up from 270 units in 2011.
Later in 2013, Ducati sales rose by 88.6% to 2,367 units before surging to 2,772 units sold in 2014.
Ducatisti registered a record high of 2,998 units sold in 2015,up 8.2%.
MLNathasit said with Ducatisti focusing more on introducing new models locally.
The company also plans to reduce its delivery time to Thai buyers from six to seven months to only one to two months.
Ducati plans more attractive pricing for spare parts after Ducatisti announced last year it would give a special 20% discount on related-products.
In addition, transport of parts to its 13Ducati showrooms and service centres should be sped up to less than seven days.
"We have 12,000Ducati's customers and the new marketing campaign and packages are scheduled to kick off in February," said MLNathasit.
The new 2-million-baht flagship store for Ducati merchandise is slated to open this month.
Its wholly-owned manufacturing arm Ducati Motor (Thailand) runs its assembly plant at Rayong's AmataC ity Industrial Estate