Thai New-Vehicle Sales Tumble Amid Political Unrest

Thailand’s new-vehicle sales plunged 36.9% in November to 93,483 units as escalating street violence in the capital city of Bangkok left the country with only a caretaker government and prospects for new elections dimming.

The November result saw car sales tumble 48.0% to 40,439 units and commercial-vehicle deliveries drop 24.8% to 53,044, including the 1-ton pickup truck segment slipping 24.3% to 46,023.

The result left 11-month sales down 5.8% year-on-year to 1,216,751 units, according to Toyota Thailand, which collates data for the auto industry.

Car sales through November fell 3.5% to 580,169 units, while CV deliveries dropped 7.8% to 636,582 units with the 1-ton pickup segment off 11.5% to 533,566.

Sales have fallen for seven straight months after manufacturers completed deliveries of vehicles sold during the government’s highly successful first-time car-buyer program with its significant tax breaks of up to TB100,000 ($3,060).

Senior Vice President Wutthikorn Suriyachantanano says in a statement the November result also was affected by a drop in car production as manufactures prepared to introduce several new models next year.

Wutthikorn says Toyota expects the industry to see a jump in sales in December, traditionally the busiest month of the year. He predicts the market will be boosted by end-of-year promotions as automakers seek to achieve 2013 sales targets. Deliveries from the recent Thailand International Motor Expo and its introduction of new models also helps December sales.

But the cloud on the horizon is the political instability marked by continuing street violence despite the government calling a general election for Feb. 2 and acting as caretaker in the meantime.

Toyota led new-vehicle sales in November, falling 16.2% to 38,543 units, ahead of Isuzu, skidding 35.2% to 14,082, and Honda, retreating 58.6% to 9,537.

The new-car market was topped by Toyota, off 15.0% to 17,313 units, with Honda declining 59.2% to 8,772, and Nissan, plunging 70.0% to 4,235.

Toyota also topped the CV segment, with sales down 17.2% to 21,230 units, ahead of Isuzu, backsliding 35.2% to 14,082, and Mitsubishi, falling 23.3% to 5,389.

New-vehicle sales through November showed Toyota leading the way despite deliveries falling 15.1% to 404,151 units. Honda followed, up 31.4% to 198,005, ahead of Isuzu, down 1.8% to 188,365.

The new-car market saw Honda take the top spot year-to-date as its sales rose 23.7% to 178,973 units, while Toyota fell 16.8% to 172,916. Nissan followed, down 23.9% to 69,409.

Toyota set the pace in the CV segment, despite a 13.7% decline to 231,235 units, followed by Isuzu, off 1.8% to 188,365, and Mitsubishi, falling 31.5% to 53,861.

Within this, the still important 1-ton truck segment was topped by Toyota, down 13.8% at 213,851 units, with Isuzu off 4.9% to 166,628 units and Mitsubishi down 31.5% at 53,861 units.

The Automotive Industry Club of the Federation of Thai Industries tells The Nation newspaper full-year Thai sales are expected to come in at 1.3 million units, down from last year's record 1.4 million.

Club spokesman Surapong Paisit-patanapong says 2014 sales are expected to fall short of 1.3 million units, while exports have been targeted at 1.25 million.

But Mazda Thailand President Choichi Yuki expects deliveries to exceed 1.3 million units as market distortions from the first-car buyer program fade.

Ford Thailand Managing Director Yukontorn Wisadkosin forecasts sales of about 1.2 million units next year.

“We expect the overall market to see a year of correction to reflect the market's actual demand,” Yukontorn tells reporters. “But sales that reach over 1 million units a year are still considered a healthy market.”