Michelin Siam expects another 7% decline

       Michelin Siam says it expects a 7-per-cent drop in the overall lorry and bus tyre market this year, similar to last year's decline.
       The economic crisis and domestic problems have been blamed for the lower performances.
       The overall lorry and bus tyre market is expected to reach 1.8 million treads this year, with 90 per cent in the replacement market and the remaining 10 percent in the original-equipment market.
       The Thai market is now split 50:50 between radial and bias-ply tyres, although the market share for radials is growing 7-10 per cent annually.
       The company made the remarks yesterday at a contract signing for 14 new Michelin Service Point dealerships, which will expand Michelin Siam's nationwide network further.
       The Service Points provide nearly full services, similar to the Michelin Truck Service Centres. Each Service Point will have a one-year contract with the company.
       Michelin Siam has 42 Michelin Truck Service Centres throughout the Kingdom, providing advanced services like wheel alignments that are not available at Service Points.
       "The purpose of Michelin Service Points is to expand our network and provide a cheaper option to dealers wanting to sell and provide Michelin-tyre services. A Truck Service Centre can cost more than Bt10 million, a Service Point only 40 per cent of that. We hope to have 16 more Service Points by 2011, bringing the total number to 30. In the lorry-tyre business, service is a very important factor," said Jaipetch Chevaphatrakul, commercial director for lorry, bus and off-road tyres at Michelin Siam.
       Michelin Truck Service Centres cover every major city in Thailand, while the Service Points are targeted at more rural areas.
       The Service Points also sell Michelin tyres, as well as other brands, but dealers have a set percentage for how many of each brand may be sold.
       Michelin is also promoting its Energy series, which the company says provides a fuel saving of 5-10 per cent. Jaipetch said more customers were opting for Energy tyres but declined to give exact figures.
       Michelin also wants more of its customers to retread their tyres, which almost doubles their life. Retreading costs only about half the price of a new tyre.
       Michelin will now retread old tyres from its competitors, as well. The main competition for Michelin Truck tyres in Thailand is Bridgestone.
       Bridgestone operates similar service centres located nationwide, called Bridgestone Truck Tire Centres.