Toyota Knocked Off Pickup Perch as Thai Market Continues Slide

Toyota was toppled as Thailand’s 1-ton pickup king as the Thai auto industry continued its long deceleration, falling 26.2% in April to 54,058 units and leaving the year-to-date total off 15.3% at 251,845.

Isuzu moved to the top of the commercial-vehicle market with April sales down 13.3% to 11,672 units. This was more than enough to relegate Toyota, which plunged 55.5% to 6,271, to second place.

Within the CV segment, the 1-ton pickup market saw Isuzu in front as well, despite a 15.3% drop to 10,614 units. Toyota sales slid a more dramatic 58.5% to 5,505.

Isuzu also leads the CV market year-to-date, with deliveries down 15.1% to 47,577. Toyota finds itself in an unaccustomed second place, off 23.8% to 44,915 units, but well ahead of Mitsubishi, down 16.9% to 10,835.

Toyota is looking to get back on top with the release of its all-new 1-ton pickup truck. The eighth-generation Hilux is offered with a choice of diesel and gasoline engines and three body styles.

The automaker aims to sell 14,000 of the new pickups a month, up from the 11,000-unit average during the first quarter. It also plans to produce 500,000 Hiluxes this year for both the domestic and the 100-country export market.

Data compiled for the industry by Toyota Thailand shows April passenger-vehicle sales fell 24.7% year-on-year to 23,470 units, while CV deliveries dived 27.3% to 30,588, with the important 1-ton pickup segment off 34.3% at 22,606.

Senior Vice President Vudhigorn Suriyachantananont says any recovery is being stalled because both businesses and households are cautious about spending.

“This is due to the persistently high household debt level as well as financial institutions’ rigid criteria for loan approvals,” Vudhigorn says in a statement. “This affects liquidity and the overall purchasing power of consumers.”

Vudhigorn says he expects little change in the sales outlook this month despite greater political stability and the accelerated investment in government projects.

“The promotion and introduction of new models is positive for the auto market, but concerns remain about the volatility of the global economy and its impact on exports,” he says.

To date, the passenger-vehicle market is down 5.7% to 102,440 units, while the CV segment is off 15.1% at 149,405 units, including the 20.6% drop in the 1-ton pickup market to 115,472.

Toyota continues to lead the market in Thailand, despite April deliveries plunging 50.4% to 13,246 vehicles. Isuzu closed the gap, falling only 13.3% to 11,672 units, ahead of Honda, up 19.6% at 8,603.

Federation of Thai Industries Vice Chairman Vallop Vitanakorn says the long slowdown in the automobile industry has seen hundreds of workers laid off at subcontracting companies.

Vallop tells the Bangkok Post newspaper the weak economic outlook is making potential buyers reluctant to purchase new cars and this has forced automakers to slow their orders to sub-contractors. He estimates the number of layoffs to date at 500 with more to come.

“Both skilled and unskilled workers are at risk of losing their jobs,” Vallop says.

The federation’s auto industry club says Thailand’s April exports rose 17.7% year-on-year to 82,130 vehicles, boosted by an increase in shipments of eco-cars to Europe and North America and a recovery in Australia and Asia.

The newspaper quotes club spokesman Surapong Paisitpatanapong as saying exports in the first four months of the year were up 13.6% to 410,362 vehicles.