Tuesday, April 04, 2017

Truck News: Volvo Trucks grows its market share in Malaysia’s premium heavy-duty commercial vehicle segment

Volvo Malaysia announced today that it had recorded an increase of 4.8% in sales for its Volvo truck brand for financial year 2016, compared to the previous year. The growth was achieved through the sale of 370 units of trucks. This has led to the brand capturing 45% of the market share in the European heavy-duty prime mover segment in Malaysia, making it the top truck brand for the year.


This news is good news to the brand as the overall heavy duty truck market in Malaysia had actually shrunk by 5% in 2016. We have to note that the success of Volvo Trucks is because the company had also actively pursued more market opportunities by enhancing aftermarket support and increasing the number of training sessions for its customers’ truck drivers as well as their well known Fuelwatch Challenge driver's competition. Volvo Trucks has also recorded an 83% rating in Customer Service Index (CSI) for the European trucks segment, based on feedback gathered recently by an independent research agency. So it is the combined efforts of sales, afersales and other value added services that come into play.

Future plans include the launch of a new premium flagship truck offering the latest in fuel economy, safety features and with massive torque and haulage power. The new truck that Volvo Trucks will launch soon (REALLY, REALLY SOON!!!) will push the boundaries of what a premium heavy-duty truck can offer in terms of fuel economy, reliability, ergonomics, superior handling, safety and uptime. Can't wait. If you folks would like to know which model the company is launching, my clue to you folks is that this sits about the current official offering by Volvo Trucks Malaysia (which is the FM series of trucks). You can find it on their global website for more details. 


PRESS RELEASE
Volvo Trucks grows its market share in Malaysia’s premium heavy-duty commercial vehicle segment

Shah Alam, 04 April 2017 - Volvo Malaysia announced today that it had recorded an increase of 4.8% in

sales for its Volvo truck brand for financial year 2016, compared to the previous year. The growth was

achieved through the sale of 370 units of trucks, which also led to the brand capturing 45% of the market

share in European heavy-duty prime mover segment in Malaysia, making it the top truck brand for the

year.

Commenting on the growth, Mats Nilsson, Managing Director of Volvo Malaysia said, “The overall heavy

duty truck market in Malaysia had actually shrunk by 5% in 2016, mainly attributed to a slowdown of the

economy and currency depreciation, which resulted in companies scaling back on their capital

expenditures. Despite a challenging business environment, we managed to stay on course with our

business strategy and effectively utilised our resources to achieve continued growth.”

“Our success for 2016 is definitely a continuation of our record achievement from three years ago, where

we enjoyed a 38.5% growth in truck sales, marking our most robust growth in the past fifteen years,” said

Nilsson.

In recent years, Volvo Malaysia started to embark on several new strategic initiatives aimed at driving the

business forward. These included a RM75 million investment on network expansion that involved the

relocation of some of its dealerships to new sites for customers’ better access and upgrading of facilities

and technical skills for quality services. This effort has enabled Volvo Trucks to establish better dealer

coverage of within three hours from one workshop location to another.

The company had also actively pursued more market opportunities by enhancing aftermarket support and

increasing the number of training sessions for its customers’ truck drivers.

Nilsson also remarked, “Our strategy revolves around satisfied and productive customers. As one of the

world’s largest commercial vehicle companies, we are constantly utilising technology to create smarter,

reliable and safer trucks that deliver greater productivity.”

“Although trucks constitute our main product selection, the quality of our aftermarket products and

services remains a crucial component in the overall customer experience with Volvo Trucks. Thus, the

reason we have made significant investments in upgrading all our dealerships in accordance with our

global operating standards.”


The company’s largest flagship dealership was opened in Port Klang early last year as part of its network

strategy to raise the bar in customer excellence, and has since recorded a service intake of more than 3,500

trucks with faster turnaround time.

Other than upgrading its physical facilities, Volvo Trucks also continues to engage with truck drivers

through its annual Fuelwatch Challenge to foster greater customer relationship and create safer road

environment.

“Safety has always been a key priority at Volvo Trucks. We approach it from three aspects – safer truck,

safer driver and safer society. Our Fuelwatch Challenge teaches drivers about the importance of safety and

fuel-economy. We had a participation of more than 1,400 truck drivers from all over Malaysia last year,

which was a 28% increase from the previous year. It has become increasingly popular as our customers

have started to see the benefits to their business bottom line through better quality drivers.”

The strategic investments and customer-focused initiatives the company has undertaken in the past few

years to deliver long-lasting truck ownership experience have paid off, according to Nilsson.

He said, “Volvo Trucks was recognised as the number one brand in customer satisfaction, with an 83%

rating in Customer Service Index (CSI) for the European trucks segment, based on feedback gathered

recently by an independent research agency.”

However, he added that although this proves that the range of trucks made available for the local market

alongside the implementation of its dealership network and customer service enhancements are working

well, the company aims to achieve much more.

A major plan this year would include the launch of a new premium flagship truck offering the latest in fuel

economy, safety features and with massive torque and haulage power.

On this, Nilsson shared, “The new truck that we are launching soon will push the boundaries of what a

premium heavy-duty truck can offer in terms of fuel economy, reliability, ergonomics, superior handling,

safety and uptime. It will be made available in Malaysia very soon.”

On the company’s long-term plans, Nilsson said, “Volvo Trucks is gearing up towards the opening of

regional borders under the ASEAN Economic Community agenda. When trade borders open, this means

that a company can transport goods from Singapore all the way to Thailand or vice versa without having

to change prime movers, if they are using a reliable truck, or have its cargo inspected, just like in Europe.

We have the most number of dealerships in Malaysia among European brands. This is one of our strengths

which we plan to leverage by looking into setting up a common regional call centre in Malaysia that can

collectively and seamlessly cater to the needs of our local and regional customers once the trade borders

open.”

Nilsson added that Volvo Trucks has made significant business investments thus far and looks forward to

more opportunities to further reinforce its foothold in the country.

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