Thailand October Sales Slump 20%; Down 36% on Year

Thailand’s new-vehicle market continued its decline with October deliveries down 20% to 70,850 units, leaving the year-to-date total off 36.0% at 719,260.

Toyota Thailand, which collates data for the Thai industry, says new-car sales fell 28.0% to 30,159 units, while commercial-vehicle deliveries dropped 13.6% to 40,691.

Within the CV segment, the 1-ton pickup market declined 13.3% to 34,220 units.

Toyota Executive Vice President Wutthikorn Suriyachantanano says the market was stable month-on-month as the economy responded to government stimulus measures.

“The launch of new models of cars, as well as the Thailand International Motor Expo later this month, are considered positive factors in stimulating the car market,” Wutthikorn says in a statement.

“However, the concerns of consumers about the cost of living remained unchanged at a high level.”

The motor expo starts Saturday and runs until Dec. 10, and analysts are predicting orders for about 50,000 new vehicles worth TB54 billion ($1.6 billion).

Wutthikorn says sales nationwide are being impacted by the high burden of household debt and shrinking farm income, reducing the purchasing power of consumers.

The market began the year hurt by a weak economy and the loss of tourism following the military coup. “As a result, businesses and households remain cautious about investing and spending,” he says.

The market also is still readjusting after the end of the government’s massively successful first-car-buyer tax-rebate program.

Toyota sees the market trend in November as stable, although uncertainty about the global economic recovery is negative for exports.

After 10 months, the new-car market was down 43.7% to 303,859 units, while the CV segment declined 28.8% to 415,401.

Toyota led the market in October with deliveries down 15.3% to 26,861 units, ahead of Isuzu, down 34.7% to 12,464 units and Honda, down 23.4% at 8,837 units.

The CV segment saw Toyota backtrack 14.5% to 14,435 units but remain ahead of Isuzu, slipping 3.7% to 12,464.

Within this, Toyota led 1-ton pickup deliveries, dropping 12.3% to 13,527 units, ahead of Isuzu, down 2.0% to 11,172.

Through October, Toyota dominated the market despite a 27.5% drop-off in year-over-year deliveries to 264,989 units. That’s about double the volume of second-place Isuzu, falling 23.9% to 132,595 units. Third-place Honda tumbled 55.7% to 83,508.

The car market saw Toyota down 21.0% to 122,947 units; Honda off 54.9%, to 76,732; and Nissan, down 60.5% to 25,763.

The competition was slightly closer in the CV segment with Toyota slumping 32.4% to 142,042 units, ahead of Isuzu, off 23.9% to 132,595.

The 1-ton pickup market, which dominates the CV segment, saw Toyota backslide 31.1% to 133,587 units, ahead of Isuzu, down 20.8% to 121,833.

Ford and Chevrolet continued to lead the non-Japanese contingent in Thailand.

Ford saw its October sales drop 28.3% from like-2013 to 2,853 units, but Chevrolet fared worse, retreating 62.6% to 1,581.

This left Ford with a 10-month total off 27.0% to 31,711 units, comfortably ahead of Chevrolet, down 56.6% to 21,699.