May Results Show Thailand LV Sales Momentum Slowing

Thailand’s new-vehicle sales fell 3.5% in May to 111,848 units as the surge driven by the first-car tax-rebate program eased and the market returned to normal growth.

It was the first year-on-year sales drop after 16 months of gains, but year-to-date deliveries remained at record levels, up 31.4% to 634,777 units.

Toyota Thailand, which collates national sales data for the industry, says May new-car sales slipped 5.8% to 52,734 units, while commercial-vehicle deliveries fell 1.4% to 59,114, including the 1-ton pickup segment, down 4.8% to 49,664.

Toyota Thailand Senior Vice President Wutthikorn Suriyachantanano says in a statement the May result signals a slowdown expected to continue in June with the market returning to normal as the backlog from last year’s first-car tax-rebate scheme and natural disasters in 2011 and 2012 ebbs.

Toyota was the market leader in May with sales down 3.5% to 38,024 units, ahead of Honda, jumping 39.2% to 21,709 and Isuzu, up 10.6% to 18,647.

Honda continued to lead the car segment with deliveries climbing 34.5% to 20,139 units while Toyota dropped 17.7% to 16,328. Nissan was a distant third, tumbling 63.5% to 3,381.

Honda, the car-sales leader in Thailand since the last quarter of 2012, attributes its success to proactive marketing and the launch of a record 12 new models in 12 months after production resumed in April 2012 at its Ayutthaya plant.

The CV segment saw Toyota on top in May despite a 9.1% slip to 21,696 units, with Isuzu closing in, up 10.6% to 18,647. Mitsubishi followed, sinking 27.1% year-over-year to 4,588.

Within the segment, Toyota led the 1-ton pickup market, down 8.0% to 20,311 units, ahead of Isuzu, up 6.5% to 16,363.

After five months, Toyota led the Thai CV sector with an uptick of 1.7% to 199,258 units. Honda followed, soaring 271.0% to 114,113 as it bounced back from last year’s shutdown of its flooded plant. Isuzu was in third place, improving 28.3% to 102,718.

The car market saw Honda on top year-to-date, with sales spiking 238.9% to 101,126 units, well ahead of Toyota, down 2.9% to 82,493 and Nissan, improving 14.1% to 39,860.

Toyota led year-to-date CV deliveries, up 5.3% to 116,765 units, but second-place Isuzu narrowed the gap, advancing 28.3% to 102,718. Third-place Mitsubishi skidded 16.9% to 29,805, all 1-ton pickups.

In that 1-ton pickup segment, Toyota was up 5.9% year-to-date to 108,431 units with Isuzu growing 25.3% to 92,096.

Both Chevrolet and Ford saw a year-on-year sales drop in May.

Chevrolet retreated 20.0% to 4,752 units, but remained up 0.5% year-to-date to 26,823. Ford deliveries eased 7.0% last month to 3,551, but its 5-month result was up a strong 38.9% to 22,687.

Chevrolet’s Colorado pickup was the nameplate’s top seller in May with 2,125 units, followed by the Sonic subcompact with 1,162. The Ranger set the pace for Ford, with deliveries up 41.0% year-on-year to 2,117 units. Deliveries of the pickup were up 81.0% year-to-date to 10,641.

Year-to-date sales of Ford’s all-new Focus small car spiked 232% to 2,758 units.

Federation of Thai Industries Automotive Industry Club spokesman Surapong Paisitpatanapong tells the Bangkok Post vehicle exports edged up 0.7% in May to 86,577 units. That was up 28.0% from April.

After five months, exports were ahead 21.0% to 438,184.

Economic analysts Asia Plus Securities predict in a market report published in The Nation newspaper that Thai second-half production will fall to a normal 80,000 to 90,000-unit monthly level with the completion of first-car-scheme deliveries.

The brokerage house predicts full-year output rising 6.0% to 2.6 million units.