Managing Director of Lao Toyota Service Co., Ltd., Mr Pasatxay Philaphandeth, said on Friday that strong competition among the various vehicle manufacturers is the norm now in the domestic market.

Lao Toyota Service Co., Ltd. is targeting the sale of 9,000 vehicles this year with pickup trucks such as the Hilux Revo still popular with local customers after it was the highest selling vehicle last year.

About 30 percent of Toyota Laothani Co., Ltd.’s customers are government bodies and development projects, followed by the banking sector and individuals.

Mr Pasatxay believes sedans and sport utility vehicles (SUVs) will continue to carve out bigger market shares in the future as they offer owners more convenience in parking and general motoring while pickup trucks’ overall share of the total market will continue to decline.

He said companies were offering several incentives in a bid to boost sales, such as small or zero down payments and easy finance for customers.

Vice President of New Chip Xang Co., Ltd., Mr Saneu Chounramany, said on Monday during the launch of the new Honda CR-V G5 at Vientiane Centre that Honda’s total sales in Laos were expected to grow by 10 percent this year with sedan and SUV sales to reach 200 vehicles.

Mr Saneu believes there is still market potential over the next two years for these vehicle segments as manufacturers are launching new sedan and SUV models as well as offering sale promotions to further lure customers.

The Department of Taxation also pointed to vehicle imports continuing to grow this year, even as consumer tax has increased, but Lao customers’ purchasing power is still high, based on the economic growth rate.

Lao customers also have more options when it comes to buying vehicles, due to various offers by motor companies including instalment payment plans with low or even zero interest levied.

These kinds of inducements have meant that many people have become new car owners, which is expected to sustain vehicle imports over the coming years.

According to Department of Public Works and Transport figures, vehicle numbers in Laos increased by 8.17 percent in 2015 compared to the previous year, up from 1,577,184 to 1,717,504 vehicles, including 1,326,868 motorcycles, 337,449 cars and 53,187 trucks.

Vientiane recorded the largest number of vehicles at 721,882, followed by Savannakhet (273,279) and Champassak province (145,289).