Thai Industry Expected to Miss 2013 Output Target as Sales Slow

Falling domestic sales mean it is unlikely the Thai motor industry will meet the 2013 industry production target of 2.55 million vehicles.

The Federation of Thai Industries, the auto industry club, says output after 10 months was up 7.1% to 2.115 million vehicles. But with production for the last two months forecast at 390,686 units, the 12-month total will come in at just 2.51 million vehicles.

The club says October’s vehicle output fell 26.6% to 185,117 units, as domestic sales slid 37.7% to 88,989 while buyers waited for better deals likely to come at the Thailand International Motor Expo (Nov. 28-Dec. 10). Exports for the month eased 1.4% to 96,864 units.

The Bangkok Post quotes FTI Chairman Suparat Sirisuwannangkura as saying that while this year’s forecast production is unlikely to be reached, he believes exports can meet the target of 1.15 million vehicles.

Thailand’s 10-month sales total was down 1.8% year-on-year to 1,123,268 units, but exports rose 12.4% to 944,205.

Car sales have been impacted by the flood crisis of two years ago. Output fell 11.4% in 2011 to 1.5 million vehicles, with domestic deliveries easing 0.6% to 795,250 units.

But with the government's first-time-car-buyer tax-rebate scheme leading the way, production last year soared 98.3% to 2.5 million units. Within this, domestic sales surged 80.6% to 1.4 million.

The auto industry club predicts production next year will edge up to between 2.55 million and 2.6 million vehicles. This includes 1.2 million exports and domestic sales of 1.35 million to 1.4 million.

Suparat tells the newspaper the ongoing political uncertainty in Bangkok and delays in government megaprojects will put pressure on the car industry in 2014.

“The political situation affects not only consumers’ decisions to buy a new car, but also car makers’ confidence,” Suparat says.