Thai LV Sales Tumble After Government Rebates Expire

Thailand’s new-vehicle sales plunge 37.7% year-on-year in October to 88,989 units following expiration of the government’s first-car-buyer tax-rebate scheme that extraordinarily boosted demand.

It was the sixth straight month of falling sales, and industry data compiled by Toyota Thailand shows the October plunge pushed year-to-date volume down 1.8% to 1,123,268 units.

Toyota Thailand Senior Vice President Wutthikorn Suriyachantanano says other negative factors for the month included a cut in car output in preparation for the production of new models in late October and a deepening political crisis.

“The political instability may impact on the economy as a whole, which may affect the auto market,” Wutthikorn says in a statement.

If politicians remain calm amid mounting protests, he expects November’s result to improve on October because of the new-model releases and marketing campaigns to be launched at the Thailand International Motor Expo from Nov 28.-Dec 10.

October’s car market tumbled 42.0% to 41,878 units, while commercial-vehicle deliveries dropped 33.3% to 47,111, including the 1-ton pickup segment that skidded 35.7% to 39,469.

Car deliveries in the first 10 months rose 3.1% to 539,730 units, but the CV market fell 5.9% to 583,538, with the 1-ton segment off 10.1% to 487,543.

Toyota led the October market with sales off 35.4% to 31,709 units, comfortably ahead of Isuzu, down 35.8% to 12,947, and Honda, contracting 45.8% to 11,530.

Toyota regained the monthly car-sales leadership despite its deliveries slipping 26.7% to 14,823 units as previous leader Honda dived 45.9% to 10,633. Nissan followed, plunging 57.9% to 4,744.

In the 1-ton truck market, Toyota retreated 43.6% to 15,419 units for the month, ahead of Isuzu, down 36.5% to 11,402, and Mitsubishi, off 38.6% to 4,114.

Toyota is dominating the market year-to-date with sales down 14.9% to 365,608 units, double the combined results of Honda, up 47.6% (188,468), and Isuzu, up 2.4% (174,283).

In the car market, Honda continued to lead year-on-year, up 38.2% to 170,201 units. Toyota followed, down 17.0% to 155,603, with Nissan a distant third, off 15.4% to 65,174.

The important 1-ton truck segment saw Toyota on top but down 13.6% to 193,888 units, comfortably ahead of Isuzu, easing just 0.9% to 153,913, and Mitsubishi, off 32.3% to 48,472.

Chevrolet led the non-Japanese contingent in October with deliveries falling 36.9% to 4,231 units, enough to hold off Ford, which fell only 8.2% to 3,977.

With two months of the year remaining, Chevrolet was down 16.2% to 50,002 units, while Ford was narrowing the gap, up 2.3% to 43,412.

Still, Chevrolet reports its October sales in Southeast Asia edged up fractionally to 7,502 units thanks to a 66% year-on-year jump in the Philippines to 499 units and a 490% leap in Indonesia (2,351).

“We continue to see a positive trend in Chevrolet's market share throughout the region in the midst of what is probably the most competitive environment we've seen in a long time,” Gustavo Colossi, vice president-sales, marketing and aftersales for Chevrolet Sales Thailand and GM Southeast Asia Operations, says in a statement.