Sosuco and Group (2008) Co, the tile maker, will focus more on exports next year, as domestic consumption is slowing with the first-time car buyer scheme sapping consumer spending power.
Managing director Kittichai Kraikokit said purchasing power is declining with so many Thais buying new cars to capitalise on the tax-rebate offer.
"For Thais, changing tiles or renovating the home always runs second to buying a car. Home renovation can wait, but buying a new car cannot," he said.
Sosuco will export more tiles to Africa, where consumer tastes are similar to that of Thais upcountry _ bold colours and designs that Chinese makers rarely produce.
Exports will account for an estimated 20% of company revenue this year, rising to 30% next year.
About 60% of Sosuco's exports are to other Asean countries.
"We thought there'd be a large demand for home renovation in the wake of last year's severe flooding. But in reality, people ended up not putting in new tiles right away, as they wanted to see if there'd be more floods this year.
"Now they know there'll be no more flooding but have decided to buy a car instead of spending on home renovation," said Mr Kittichai.
He said competing with cheaper Chinese tiles sold here is another obstacle that has prompted the company to shift away from domestic sales to export markets.
Mr Kittichai said Chinese products have a 20% market share of the country's tile market, which is valued at 27-28 billion baht.
Most of the Chinese tiles are in the large segment.
Sosuco estimates this year's sales at 5 billion baht, up by 10% from last year.
However, the company projected sales to grow by only 5% next year due largely to the decrease in domestic purchasing power.