TMT maintains sales target in weak market

TMT maintains sales target in weak market

Sales down 3% through nine months

TOKYO : Toyota Motor Thailand (TMT) maintained its new vehicle sales target of 450,000 units this year, despite lingering weak demand following the end of the government's first-time car buyer scheme.

Toyota’s fuel-cellpowered concept car, which it just unveiled at the Tokyo Motor Show, is set for a commercial introduction in 2015.

"We do not plan to revise this year's sales target," said senior vice-president Vudhigorn Suriyachantananont.

In July TMT cut its sales target by 10% from 500,000 units after demand softened from May as most cars that qualified for the tax rebate scheme, which lapsed in 2012, were delivered.

The first-time car buyer programme, a major populist policy dreamed up by the ruling Pheu Thai Party, has been criticised by academics and economists for distorting the vehicle market, as the programme stole future demand, created artificial demand and increased household debt burdens.

For the first nine months, TMT's sales numbered 333,899, down 12.3% over the same period last year. But it retained its market leadership, with a 32.3% market share, followed by Honda at 176,938 units and Isuzu at 161,336.

Domestic car sales for the nine months through September totalled 1.03 million units, down 3.4% year-on-year.

The local car market is returning to normal growth, with sales of around 100,000 units per month, so the overall car sales target of 1.3 million units is likely reachable, said Mr Vudhigorn.

"It's difficult to predict how long the adjustment period will last, but all car makers are launching campaigns to boost demand," he said.

The auto industry is moving toward fuel cell-powered vehicles (FCV), and whether they will be introduced in the Thai market depends on the government's policy for alternative-fuel vehicles, said Mr Vudhigorn.

Toyota, a pioneer in hybrid technology vehicles _ cars that use gasoline and electric motors _ introduced its FCV concept cars at the Tokyo Motor Show 2013. Its cells can be recharged within minutes and it can cover about 500 kilometres on a single charge.

Toyota's FCV car, which runs on hydrogen rather than gasoline, set 2015 for its commercial roll-out.

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