English
Thailand: Local sales drive auto output
The Federation of Thai Industries (FTI) has increased its projection for the country’s automotive output in 2018 after recording huge growth in domestic sales.
On Tuesday, the FTI’s automotive industry club announced the 2018 projection for car production at 2.1 million units, up by 5.59% from 2017. The local market has driven the higher output, with 1 million cars sold so far this year, up by 14.7%.
The domestic market is predicted to exceed the 1-million-unit level for the first time since 2013, when it was propelled by the Yingluck Shinawatra’s government first-time car buyer scheme.
But car exports are to remain lukewarm for the third consecutive year, with shipments projected at 1.1 million units in 2018, down by 3.48% from 2017.
Surapong Paisitpatanapong, the club’s spokesman, said domestic sentiment has gained positive momentum from the country’s economic expansion.
“Investments from the government and private sector are two key engines for the Thai economy, while the state’s poverty measures are set to beef up local consumption,” he said.
“The car market has been stimulated by launches of new cars from manufacturers and distributors, and buyers have been ready to replace their cars.”
The club reported domestic sales in October rose by 26.8% from the same month last year to 86,931 units, but dropped by 2% from September.
Overall car sales grew by 20.9% to 833,515 units over the first 10 months this year.
Mr Surapong said the fourth quarter is the high season for most business operators, including the automotive sector.
“The Thailand International Motor Expo is scheduled from Nov 29 to Dec 10, which should spur local sales to exceed 100,000 cars in December,” he said.
The club also reported the country’s automotive output in October hit the highest level in 63 months with a rise of 20.6% to 197,203 units. Overall car output from January to October stood at 1.8 million units, a rise of 9.75%.
Car exports in October grew by 2.75% to 93,338 units, but export value dropped by 2.65% to 48.5 billion baht.
Shipments from January to October increased by 1.2% to 952,125 cars, with value for the period up by 0.04% to 499.4 billion baht.
Mr Surapong said the export outlook faces myriad negative factors globally such as the trade war between the US and China.
Thailand was cut from Europe’s Generalized System of Preferences (GSP), including for vehicles, so car makers plan to ship to Turkey, which remains in the GSP, for further shipments to Europe. The obstacle to Vietnam shipments remains, limiting exports there, he said.
Source: https://www.bangkokpost.com/business/news/1579518/local-sales-drive-auto-output