Thai Automakers Predict Rebound in 2015 Production

The Thai auto industry sets a 2.15 million-unit target for this year’s production, up 14.4% from 2014, even as local sales started 2015 by continuing their more than yearlong slide.

The Federation of Thai Industries Automotive Industry Club says the 2015 production target includes 950,000 units for the domestic market, up 7.7%, and 1.2 million units for export, up 6.4%.

The club a year ago pegged 2014 production at 2.1 million units, but the industry reached only 1.9 million, held down by factors including the end of the first-car tax-break policy and political turmoil that involved a military coup.

“The failure of the economy to recover fully, falling agricultural prices, the high level of household debt…and sluggish public and private investment have all contributed to the slowdown of domestic demand, which has led to a shift in the focus of automobile production this year,” club spokesman Surapong Paisitpattanapong tells The Nation newspaper.

Surapong says industry production rose 2.2% year-on-year in January to 166,260 units. Output was up 8.2% on December.

Toyota Thailand, which collates data for the Thai industry, says January light-vehicle sales fell 12.8% to 59,721 units with falls across the board.

New-car deliveries fell 11.4% to 23,405 units, while commercial vehicles slipped 13.7% to 36,316, including the 1-ton pickup segment off 18.1% at 28,738.

Toyota Executive Vice President Wutthikorn Suriyachantanano says the February result is unlikely to show any improvement, because although the political situation under the military government is stable, cautious consumer spending and banks setting stricter conditions on car loans will slow demand.

However, Surapong tells the Bangkok Post he expects domestic sales will start recovering next month, helped by the Bangkok International Motor Show from March 25 to April 5.

Toyota started the year where it left off as the comfortable market leader, despite a 23.4% backslide to 20,094 units for a 33.6% market share. Isuzu followed, down 13.0% to 11,202 units and ahead of Honda, which plunged 74.7% to 10,099.

The car segment saw Toyota down 26.5% to 8,443 units; Honda up 67.8%, to 7,687; and Mazda, soaring 148.5% to 1,732.

Toyota led the CV segment, falling 20.9% to 11,651 units, ahead of Isuzu, down 13.0% at 11,202, and Nissan, slipping 1.9% to 2,762.

Within the CV segment, Toyota led the 1-ton pickup market, down 21.7% at 10,761 units. Isuzu followed, down 13.5% at 10,351, ahead of Mitsubishi, off 11.5% at 2,644.

Ford led the non-Japanese contingent despite falling 35.3% to 1,979 units, while Chevrolet tumbled 44.8% to 1,316.