Thai Sales Post Triple-Digit Gains in Flood’s Wake

Thailand’s November new-vehicle sales soar 477.6% over the year-ago’s flood disaster to a monthly record 148,243 units.

As the woes of the flood crisis evaporate, the 11-month delivery total was up 74.7% to 1,291,659 units, reports Toyota Thailand, which collates sales for the Thai industry.

Toyota Thailand Executive Vice President Wutthikorn Suriyachantanano says the huge year-on-year sales increase came from the low base last year when the auto industry was crippled by the flood disaster.

The massive flooding dropped November 2011 sales 67.5% to just 25,664 units.

This time around, new-car deliveries surged 509.9% to 77,743 units, while commercial- vehicle sales spiked 445.8% to 70,500. Within the CV segment, the 1-ton pickup market skyrocketed 621.2% to 60,805.

Wutthikorn says the December result will see sales continue rising, as buyers race to get in on the tax refunds offered under the first-car buyer scheme that ends Dec. 31.

“Moreover, auto companies (are rushing) to deliver some of 85,000 vehicles booked during the Motor Expo,” Wutthikorn says in a statement. “There is a long waiting line for popular and newly launched models.

“All car makers have increased production capacity to meet the increasing demands of the market. The result is continuous record vehicle sales this year.”

Toyota led the November market with deliveries up 31.0% to 46,014 units. Honda, which was hit hard by last year’s floods, jumped 628.5% to a record 23,036, ahead of Isuzu, up 78.1% to 21,724.

Honda claimed the top spot in new-car sales, jumping 658.2% for the month to 21,495 units. Toyota dropped to an atypical second place, up 857.8% to 20,372, ahead of Nissan, up 425.6% to 14,117.

The 1-ton pickup segment saw Toyota deliveries rise 39.0% to 23,733 units. Isuzu followed, surging 879.4% to 19,872, with Mitsubishi climbing 118.6% to 7,026.

After 11 months, Toyota led the market, up 72.9% to 475,820 units for a 36.8% market share. Isuzu was second with a 54.8% improvement to 191,897, with Honda third on the strength of an 84.4% gain to 150,745.

The car segment saw Toyota’s year-to-date deliveries rise 58.5% to 207,842 units. Honda followed, up 90.4% to 144,677 with Nissan increasing 119.2% to 91,160.

Toyota also led the important 1-ton pickup segment, soaring 92.6% to 248,141 units. Isuzu ranked second, climbing 55.2% to 175,214, with Mitsubishi third with a 47.5% gain to 78,650.

The American contingent also fared well in the resurgent Thai market.

Chevrolet’s November sales spiked 212.4% to 7,356 units to give it an 11-month total up 145.9% to 67,006.

Ford sales on the month surged 151.3% to 5,222 units, with year-to-date deliveries jumping 76.2% to 47,655.

The robust sales have been boosted by the government’s first-car incentive program, with the Bangkok Post reporting at least 1.1 million people have applied for the tax rebates totaling TB73 billion ($2.4 billion).

Excise Department Director General Somchai Poolsavadi says the final figure is expected to reach 1.2 million, more than double the original estimate of 500,000.

The newspaper says Honda Thailand has complained to the department over including Toyota’s Vios in the rebate program, arguing this is unfair as the Vios is not yet in production and is not available in the market.

Auto makers had to apply to the department to register specific models qualifying for the rebates to first-time buyers of pickup trucks or small cars with engine sizes of less than 1.5L.

Honda predicts its 2013 sales will be on par with this year’s to about 170,000 units, even as the market cools with the end of the first-time car-buyer rebates.

Executive Vice President Pitak Pruittisarikorn says Honda has a backlog of orders for about 500,000 vehicles to be delivered next year. It is expanding its manufacturing capacity by 20%, with the work to be completed in the first quarter at a cost of TB1 billion ($32.6 million).

The demand on the manufacturers is not just domestic; the Federation of Thai Industries' automotive industry club reports exports exceeded the 100,000-unit mark in November for the first time since Thailand began shipments in 1988.

The value of the 100,225 units shipped last month soared 1,502% year-on-year to TB46.6 billion ($1.5 billion). Exports year-to-date were up 34.2% to 940,374, worth TB449 billion ($14.6 billion).

Club spokesman Surapong Paisitpattanapong tells the Post production is expected to reach 214,988 units this month, taking the full-year total to a record 2.45 million.

Toyota dodged a bullet after a fire at its 220,000-unit Ban Pho plant, the main production site for the Hilux Vigo pickup. The fire caused TB50 million ($1.6 million) damage, but the auto maker says the facility is operating as usual.

“The area where fire broke out is the spare parts warehouse... for storing engine oil which will be distributed to Toyota’s dealers,” Pairoj Hiranruangrong, vice president-Toyota Motor Asia Pacific Engineering and Mfg., says in a statement.

“The amount of engine oil storage is only for one day as it is delivered daily,” he says.

“As for the damages resulted from the fire event, besides from the building, are spare- parts pallets, engine oil and forklift vehicles.”