Thailand’s October Vehicle Sales Ride Record Wave

Thailand’s new-vehicle sales soared 233% in October to 142,839 units from the flood-damaged production of just 42,834 a year earlier.

Passenger-vehicle sales spiked 263.7% to 72,211 units, while commercial vehicles jumped 206.8% to 70,628. Included were 61,391 1-ton pickups, up 225.5%.

Toyota Thailand, which collates data for the industry in the Southeast Asian country, says the latest result pushes the 10-month total up 60.2% to 1,143,416 units.

Year-to-date car sales grew 62.6% to 523,477 units, while CVs climbed 58.2% to 619,939.

Toyota Thailand Senior Vice President Wutthikorn Suriyachantananon says auto makers have boosted capacity to meet record demand that is expected to continue to the end of the year.

“With every car company having higher capacity, this has resulted in continuous record sales this year,” he says in a statement. “Toyota expects continued growth in November sales, due to the huge backlog and the launch of new models.”

Toyota led October sales, soaring 214.4% to 49,055 units, followed by Honda, up 303.2% to 21,265; and Isuzu, up 283.4% to 20,170.

Within this, Toyota’s new-car volume jumped 188.4% to 20,211 units, ahead of Honda, up 301.2% to 19,666, and Nissan, up 440.8% to 11,259.

The vital 1-ton pickup segment saw Toyota climb 272.2% to 27,333 units, followed by Isuzu, up 279.9% to 17,948, and Mitsubishi, up 94.9% to 6,702.

October put Toyota’s total 10-month sales up 58.5% to 429,806 units. Isuzu deliveries jumped 40.2% to 170,173, and Honda rose 62.5% to 127,709. Toyota’s new-car sales were up 45.3% to 187,470, followed by Honda, up 68.4% to 123,182; and Nissan, up 98.1% to 77,043.

The10-month 1-ton pickup market was led by Toyota, up 75.6% to 224,408 units, with Isuzu up 40.1% to 155,342 and Mitsubishi up 43.0% to 71,624.

Mazda delivered 7,202 units in October, the auto maker’s fourth straight month of more than 7,000 sales. Mazda Thailand Managing Director Choichi Yuki says in a statement the company’s 10-month sales, up 69.0% to 59,372, were higher than forecast.

Sureetip La-Ongthong Chomthongdee, Mazda marketing director, says the Thai auto industry has enjoyed tremendous demand from consumers since the mega-flood crisis last year but has been unable to respond effectively.

“The First Car Buyer Program also dramatically raised demand for automobiles, resulting in each brand facing long back orders,” Sureetip says of the government’s incentive scheme.

To meet soaring demand, Honda plans to boost its annual production capacity 20% to 240,000 units. Executive Vice President Pitak Pruittisarikorn tells The Nation newspaper half of the increase will kick in early next year, with the rest in the second half.

The auto maker has launched 10 new models since its flood-stricken plant in Ayutthaya resumed operations in April, and sales have exceeded targets, Pitak says. Over the six months since the plant’s re-opening, Honda deliveries have climbed 140% year-on-year to 103,709 units.

Its 10-month total of 127,709 units gave it a 15% market share, making Honda the second-biggest player in the Thailand’s overall car market for the first time. The total exceeded the auto maker’s previous annual sales record of 114,056 in 2010.

Tripetch Isuzu is predicting full-year sales of 210,000 units, well ahead of its previous record of 160,000 sold in 2005. The truck maker is raising its annual production capacity with a new plant that will push the total to 400,000 units by February. Truck buyers currently are facing 3-to-4-month waits.

However, Isuzu expects zero growth in the domestic market next year as it fills rising export orders. About 40% of production is destined for export this year, rising to 50% in 2013.

“'We have to honor the export contracts,” Executive Vice President Kyoya Kondo tells the Bangkok Post. We therefore are forced to contain the volume of domestic sales next year.”

Tripetch President Hiroshi Nakagawa says several auto makers, including Honda, Nissan and Mazda, plan to increase their production capacity. “Auto-parts makers may have to double their production capacity within the next five years,” he adds.

Among the newer Thai players, Chevrolet saw sales surge 252.4% to 6,707 units in October for a 10-month total up 139.7% to 59,650. Ford enjoyed a more modest 104.4% increase to 4,334, for a year-to-date total up 70.0% to 42,433.

Ford plans to expand its network of showrooms to 140 by the end of 2013 and is upgrading existing dealerships, giving them “the same One Ford look and feel,” Narong Sritalayon, Ford Thailand dealer development director, says in a statement.