Thai January Sales Growth Checked in Floods’ Wake

The Thai auto industry still is struggling to recover from the country’s flooding disaster despite January sales rising 11.5% to 76,246 units.

Passenger-car sales fell 9.8% to 27,962 units, but this was more than offset by a 29.1% jump in commercial-vehicle deliveries to 48,284.

Data from Toyota Thailand, which collates the country’s sales for the industry, shows that within the CV segment, deliveries in the important 1-ton pickup market climbed 35.3% to 42,801 units.

Toyota Thailand Executive Vice President Wutthikorn Suriyachantanano says in a statement the growth rate dropped from year-ago as not all auto makers have resumed normal operations since the floods.

New-car sales were down because Honda Thailand, the biggest manufacturer in that segment, has not yet resumed production after its plant was flooded in October.

Wutthikorn expects February results to show another increase, as auto makers accelerate output of vehicles ordered before the floods.

“The government's stimulus measures are all positive factors for the automotive market, both directly and indirectly, such as the first-car subsidy and a pay increase for civil servants,” he says.

Toyota led the January results with sales up 34.8% to 36,151 units. Isuzu followed, down 5.4% to 10,985, but ahead of Nissan, up 61.2% to 7,265.

The passenger-car market saw Toyota on top with deliveries increasing 10.2% to 13,928 units. Nissan sales soared 124.7% but it still was a distant second with 5,519, ahead of Mazda, up 59.3% to 3,452.

Toyota also led the 1-ton pickup-truck market with deliveries jumping 66.9% to 42,801 units. Isuzu followed, down 4% to 10,218, but ahead of Mitsubishi, spiking 78.8% to 6,873.

The floods’ impact on exports also continued, with shipments down 20.4% year-on-year in January to 54,191 units, but up 54.6% from December.

Automotive Industry Club spokesman Surapong Paisitpipattanapong tells the Bangkok Post vehicle production in January reached 140,404 units, the best result since the flooding in October. Output was down 4.0% from prior-year, but up 41.2% from December.

Mitsubishi built on its record 2011 result (up 65.3% to 65,350 units), with January deliveries rising 62.5% to a record 7,243.

Mitsubishi Thailand President Nobuyuki Murahashi says that with Triton sales jumping 76% to 4,736 units and the Pajero Sport up 85.2% to 2,137, the auto maker is boosting production to speed deliveries to customers.

Ford began the year with record monthly sales, rising 67% to 3,252 units, as the Fiesta had its best month since its 2010 launch, increasing 75% to 2,169.

The record January gave Ford a 4.2% market share and comes after last year’s 114% surge to a record 29,200 units, allowing the auto maker to claim the title of fastest-growing automotive brand in Thailand.

Ford Focus sales rose 133% to 266 units for its best monthly figure since May 2007. The U.S. auto maker will unveil the all-new Focus at the Bangkok International Motor Show in March – the latest of eight all-new global One Ford vehicles to be launched in the Association of Southeast Asian Nations region by mid-decade.

The new Focus will be the first vehicle built at Ford’s new, $450 million state-of-the-art Thailand facility in Rayong.

James Farley, vice president-global marketing, sales and service, says the auto maker will meet the growing demand in Thailand by opening 30 dealerships in key locations across the country by the end of the year, bringing the total to 133.

“Thai customers are smart,” Farley tells the Bangkok Post. “They look for new technology. Through our convenient dealership network – an area where Toyota has a competent footprint – it is exciting to see Ford compete with Toyota. (We) are optimistic about our growth in Thailand. Our ambitions are long-term.”

Rival Chevrolet, however, led the non-Japanese segment in Thailand, with January deliveries surging 94.9% to 3,785 units.

Mazda Thailand says orders for its new BT-50 Pro pickup in the first two weeks after the new truck’s launch were almost triple the auto maker’s monthly goal. Managing Director Choichi Yuki says it appears customers overwhelmingly have welcomed the new pickup.

“The order book purchased through the dealer is more than 4,000 vehicles, some of which have started to deliver to customers already,” he says.

Tri Petch Isuzu Sales President Hiroshi Nakagawa tells the Bangkok Post he expects Thailand's vehicle sales in 2012 will climb 27% to 1 million units, but cautions a combination of internal and external factors will challenge market expectations.

Nakagawa’s forecast is slightly lower than the 1.1 million predicted by Toyota Thailand President Kyoichi Tanada, who has set a sales target of 450,000 Toyota vehicles for a 40.9% share.