Thai Auto Sales Stay Stuck in Economic Doldrums

The Thai auto industry continued its long slide in February with sales dropping year-on-year for the 21^st straight month, this time down 10.8% to 63,949 units.

Car sales fell 12.5% to 25,425 units during the month, while commercial-vehicle deliveries eased 9.6% to 38,524, including the 1-ton pickup segment, down 12.6% at 30,719.

Data from Toyota Thailand, which collates sales for the Thai industry, shows year-to-date sales off 11.8% at 123,670 units.

The car market was off 12.0% after two months at 48,830 units, while the CV segment was down 11.7% at 74,840, including 1-ton pickup sales down 15.3% at 59,457.

Toyota Executive Vice President Wutthikorn Suriyachantanano says February’s results were impacted by a rural drought that is cutting production and income and impacting farmers’ decisions on new-vehicle purchases.

In the cities, household debt remains high, he says, and this has consumers cautious about their spending.

Wutthikorn is hoping for a turnaround this month, citing political stability under the military government coupled with its spending plans.

The launch of new models from various automakers as well as the buzz from the Bangkok Auto Show now under way also are important factors in the industry returning to growth.

On the downside, Wutthikorn says the consumer confidence index fell in February and overall purchasing power in the country is low.

“Also of concern is the uncertainty of the global economy impacting exports,” he says in a statement. “As a result, it’s likely the car market in March will be in a stable condition.”

Toyota continued to dominate the Thai market in February with deliveries down 17.6% from year-ago to 22,516 units for a 35.2% market share. Isuzu followed, slipping 12.4% to 11,758, ahead of Honda, up 17.7% at 8,793.

The car segment saw Toyota tumble 27.9% to 9,568 units, ahead of Honda, rising 6.5% to 6,622, and Mitsubishi, falling 18.2% to 1,798.

The CV segment saw Toyota drop 7.8% to 12,948 units, followed by Isuzu, backsliding 12.4% to 11,758, and Nissan, gaining 11.0% at 3,077.

Within the CV segment, the 1-ton pickup market had Toyota easing 10.4% to 12,041 units, Isuzu slowing 13.1% to 10,861, and Mitsubishi slumping 25.8% to 2,527.

After two months, Toyota led the market despite sales down 20.4% at 42,610 units, well clear of Isuzu, off 12.7% at 22,960, and Honda, jumping 42.6% to 18,892.

In the car segment, Toyota fell 27.3% to 18,011 units, Honda climbed 32.5% to 14,309 and Nissan backtracked 28.5% to 3,184.

Toyota led the 2-month CV result, declining 13.5% to 24,599 units, ahead of Isuzu, off 12.7% at 22,960, and Nissan, growing 4.5% to 5,839.

Within this, Toyota’s 1-ton deliveries dropped 16.1% to 22,802 units but held off Isuzu, down 13.5% at 21,212, and Mitsubishi, sinking 19.1% to 5,171.

The American contingent continued struggling last month. Ford’s 2,249 sales underperformed prior-year by 27.8% and left the 2-month total down 31.5% at 4,228 units. Chevrolet deliveries shrank 33.2% in February to 1,376 for a year-to-date total off 39.4% at 2,692 units.