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Toyota pickup sales off 25 in first half of year
<p><strong>Toyota pickup sales off 2.5% in first half of year.</strong></p>

Thai Sales Remain Weak, Though Slight Gain Seen for Second-Half 2015

Toyota Thailand President Kyoichi Tanada says the sales decline is being fueled by concerns over global economic instability.

With Thailand’s first-half new-vehicle sales down 16.3% to 369,109 units, Toyota Thailand is predicting the full-year result will struggle to reach 800,000 units.

Toyota Thailand, which collates national sales for the industry, says commercial-vehicle deliveries fell 13.6% to 369,109 units, while passenger-vehicle sales dropped 20.1% to 146,862 in the January-June timeframe. Within the CV segment, the important 1-ton pickup market fell 19.1% to 171,601.

Toyota Thailand President Kyoichi Tanada tells media the sales decline is being fueled by concerns over global economic instability. He says both the household and private sectors are becoming more careful about spending and investment.

But Toyota is not giving up on Thailand, now under military rule after a coup in May 2014, reaffirming the Southeast Asian country will remain its key regional operation hub.

“Toyota will put more emphasis on its exports, while enhancing the competitiveness of its manufacturing to secure total sales that will contribute to a better state of the Thai economy,” Tanada says.

The aim is to export about 390,000 units for combined vehicle and parts sales of 258.5 billion baht ($7.9 billion).

“I would like to assure you of our continued confidence in Thailand to carry on investing in the country,” Tanada says. “As a further demonstration of our commitment, Toyota will enhance the technology and knowledge transfer to Thailand to raise the level of its automotive industry and strengthen Thailand’s position as one of the key regional operation centers of this region.”

Tanada is not expecting any early bounce-back, saying the overall market weakness of the first half will have far reaching effects in delaying the car market’s full recovery.

The full-year projection for sales now is put at 495,600 CVs and 304,400 passenger vehicles.

Sales dived 33.7% last year to 881,832 vehicles, so an 800,000-unit result this time around would represent a 9.3% decline.

Still, Tanada sees results improving in the second half, citing an injection of government funding to help boost the economy, new product launches and increased automotive exports as contributing factors.

The first half ended with June sales off 18.3% to 60,322 vehicles. Market leader Toyota dropped 20.7% to 21,831 units, more than double Isuzu, down 19.1% to 10,833, and Honda, off 12.9% at 7,918.

The passenger-vehicle segment dived 35.4% to 21,283 units, with Toyota off 41.6% at 7,472 and Honda down 40.7% at 5,016.

CV sales were looking better, down just 4.5% at 39,039 units, as Toyota eked out a 2.7% increase to 14,359, while Isuzu dropped 19.1% to 10,833.

Within this, 1-ton pickup sales fell 10.0% to 30,279 units with Toyota down 2.5% to 13,456 and Isuzu off 21.2% at 9,758.

Ford was the leader among the non-Japanese contingent with June sales down 18.5% to 2,689 units for a first-half total off 28.8% at 14,331.

Chevrolet dropped to third in June behind Mercedes-Benz with a 53.2% plunge to 1,070 vehicles. Chevy, which remained in second place-year-to-date, is looking to revive its fortunes beginning this weekend with the launch of its upgraded Cruze compact at the Bangkok International Grand Motor Show Aug. 1-9.

Meantime, the Federation of Thai Industries' Automotive Industry Club reported June car and truck exports fell 26.1% year-on-year to 76,774 units. First-half exports rose 2.9% to 576,073 units.

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