AS THE cumulative number of local sales for Isuzu Ute Australia breaks through the 100,000 barrier, its parent company’s senior management team believes there is more potential to be unlocked in the Australian market.

Since 2008, Isuzu Ute Australia (IUA) has sold more than 80,000 examples of the D-Max 4×2 and 4×4, with the MU-X contributing almost 20,000 units since going to market in late 2013.

While it took two years for the brand to sell its first 10,000 units, it sold the same amount in the six months ending March 31 this year, despite a slow start to 2017 which sees its sales for the first four months down 14.6 per cent compared to the same period last year.

A runout of Euro 4-engined stock in preparation for updated versions of both the D-Max and MU-X left IUA under-supplied ahead of the changeover, with 4×2 D-Max down 30.2 per cent, D-Max 4×4 off 8.6 per cent and MU-X down 13.1 per cent in year-on-year sales to the end of April.

IUA recorded 23,377 sales in 2016, an increase of 11.4 per cent over the previous year, but IUA director of sales and marketing Yugo Kiyofuji labelled it the “worst result in our history”.

“It is not a bad record, but it is the worst result in our history,” he told journalists at the launch of the updated MU-X in Queensland, pointing to growth figures that averaged 30 per cent to the end of 2013, before it leapt 63.3 per cent in 2014 following the late-2013 introduction of the MU-X.

“From commencement of our brand, we have achieved double-digit growth for eight years, and we would like to achieve it for 10 years.”

Isuzu Motors International Operations president Yoichi Masuda told GoAuto that the size of IUA’s network in Australia points to more growth potential.

“From Isuzu’s point of view, the Australian market has been growing much more rapidly than others, but there is still more potential in Australia,” he said.

“Our market share is still poor, and through IUA and their networks I think much more volume can be sold if we can provide them with the superior products from our manufacturing side.”

IUA’s dealer network currently stands at around 130 dealers, with 122 of those fully fledged dealership properties, while the remainder are service-only outlets.

Mr Masuda suggested that the brand had the potential to top its respective categories in Australia with its two models, citing the MU-X as an example.

Mr Masuda, who is based in Bangkok, said Australia was the number-one export market for the brand, taking over from the United Arab Emirates last year, and that the market’s importance allows for flexibility in the parent company’s approach to vehicle specification.

“We are supplying a higher version of MU-X in Australia than in Thailand, and through our marketing in Australia we have learnt a lot how to provide a suitable vehicle with high specifications,” he said. “That is also a very big point for us to continue our success in Australia.”

The MU-X provided IUA with 7018 sales in 2016, which was 10.6 per cent better than its 2015 result. A similar increase is forecast for 2017, despite the slow start to the year.

“It’s been a rough start to 2017 due to the low stock levels,” said IUA assistant general manager for sales Ben Jaeger, who suggested that the MU-X in particular stood to gain ground on the back of the disappearance of models such as Ford’s Territory from showrooms.

“We still believe there is a lot of opportunity with fleet buyers, especially with the demise of locally made product. There’s a window of opportunity there, and not just with private buyers.”

Mr Jaeger also acknowledged that the company was moving into a phase where large growth figures would be harder to post, despite Mr Masuda’s desire for continued double-digit growth.

“It’s easy to have good growth on a small base, I know, but we’re no longer operating off that small base,” he said.

With just two cars in market, neither the parent company nor the local arm would be drawn on speculation around additional models for the brand.

“So far, our vision is to concentrate on our pick-ups and our single SUV,” Mr Masuda said.

Mr Kiyofuji added: “We have studied the market, and the potential, but that’s about it.”

If Isuzu was to expand its model portfolio, it would be more likely to join forces with an established player to short-cut development time and costs.

It already has commercial links to fellow Japanese company Mazda through its light truck division, as well as a new program to supply the new BT-50 ute off the back of the next-generation D-Max.

An all-new D-Max is still a number of years away.

By Tim Robson