Thai Sales Slide in July, YTD Result Remains Positive

New-vehicle sales in Thailand tumbled 25.4% in July to 98,251 units as auto makers cleared the backlog of orders from the massively successful first-car-buyers subsidy program.

Data compiled for the industry by Toyota Thailand shows year-to-date sales rose 13.6% to a record 839,046 units.

Toyota Thailand Senior Vice President Wutthikorn Suriyachantanano says the latest result shows the market is returning to a seasonal level after sharp growth last year. “After the end of the first-car buyer scheme, the automotive market tends to resume its normalcy,” he says in a statement.

The Federation of Thailand's Automotive Industry Club says as of July 6, 1.04 million of the 1.25 million vehicles ordered under the subsidy program – 83% – have been delivered. It expects the remaining 17% of orders will be canceled.

Spokesman Surapong Paisitpattanapong tells The Nation newspaper this ratio is low compared with the typical 20% cancellation rate for orders placed at auto shows.

Toyota’s data shows car sales dropped 26.3% for the month to 47,484 units, while the commercial-vehicle market slid 24.6% to 50,767, with the important 1-ton pickup-truck segment tumbling 29.6% to 41,469.

The first seven months saw car deliveries jump 24.1% to 399,535 units with the CV segment advancing 4.6% to 439,511.

Wutthikorn says with August sales also expected to return to normal levels, accelerated marketing activities by auto makers likely will stimulate demand.

Toyota topped new-vehicle deliveries in July, despite falling 29.5% to 34,164 units for a 34.8% market share. Honda followed, down 21.8% to 16,039, ahead of Isuzu, slipping 11.8% to 14,718.

Honda again led the car market last month even as its deliveries dropped 25.8% to 14,959 units. The auto maker remained ahead of Japanese rivals Toyota, down 35.9% to 14,012, and Nissan, down 30.7% to 4,526.

In the 1-ton truck market, Toyota sales plummeted 25.4% to 18,389 units, with Isuzu retreating 15.9% to 12,494 and Mitsubishi sinking 60.4% to 3,125.

Seven months into the year, Toyota maintained its market dominance despite a 6.3% downturn to 271,482 units, while Honda spiked 114.3% to 147,497, ahead of Isuzu, climbing 18.5% to 135,137.

Honda continued to lead the new-car segment, with deliveries soaring 97.3% to 132,365 units. Toyota was down 11.0% to 113,349 while Nissan lost 1.5% to 48,060.

In the 1-ton pickup category, Toyota’s 7-month sales were down 2.4% to 146,574 units. Isuzu was second despite a 15.3% improvement to 119,939. Mitsubishi followed, declining 28.0% to 36,595.

Chevrolet topped the non-Japanese sales chart even though its July deliveries fell 32.0% to 4,181 units, ahead of rival Ford, backsliding 34.3% to 3,728. Chevrolet’s 7-month sales were off 8.7% to 35,077, while Ford’s rose 15.2% to 31,150.

Separately, the automotive club sees the domestic-sales slowdown being offset by fast-growing export levels through the year’s end.

Surapong says exports are forecast to account for 43% of Thai production in the next five months, up from 40% in the first seven months. The growth is being driven by high demand for ecocars, which he says comprise one-third of shipments, up from 22% year-ago.

The main export destinations are Asia (28.5%) and Oceania and the Middle East (26%).

The federation is raising its export forecast for the full year to 1.15 million vehicles from 1.1 million.