Despite improving economic prospects this year, domestic car sales are expected to increase by only 2% to 900,000 vehicles, says US-based car maker General Motors (Thailand). But that figure would represent a return to normal level for car sales, as the extraordinary growth seen from 2012-13 was driven by government tax rebates, managing director Marcos Purty said yesterday.The Federation of Thai Industries (FTI) said sales in 2010 and 2011 stood at 800,357 and 795,250 vehicles, respectively.
But after the government's first-time car buyer scheme was introduced in 2012, industry sales surged to 1.45 million vehicles in 2012 and 1.33 million in 2013.
The FTI reported sales fell by 33.7% to 881,832 vehicles last year.
"This year's sales reflect the fundamentals of Thailand's car industry," Mr Purty said.
"It will be quite hard to return to sales of more than 1 million cars annually in the short term."
GM sold 25,700 of its Chevrolet brand last year, down by 54% from 2013, leading its market share to drop to 2.9% from 4.2%. Its overall car sales totalled 75,461 in 2012 and 56,000 in 2013.
The company expects this year's sales performance will be in line with the overall automobile market. "Normally we don't reveal sales targets, but we'll try our best to boost Chevrolet's sales," Mr Purty said.
He said GM had pinned high hopes this year on the pickup truck segment, where demand remains very strong.
This segment, which includes pickup passenger vehicles (PPVs), accounted for 48% of company sales last year and passenger cars the rest. To stimulate sales of pickup trucks, the company yesterday introduced the new Chevrolet Trailblazer, which is made at its Rayong factory.
The PPV, which has undergone minor changes, is priced from 1.095 to 1.465 million baht.
GM was among five newcomers applying for the government's second-phase eco-car investment privileges.
The others were Mazda, Ford, SAIC Motor-CP and Volkswagen.
Nissan, Honda, Mitsubishi, Suzuki and Toyota took part in the first phase and will participate in the second phase.
The 10 envisioned output of just over 1.58 million eco-cars, but Volkswagen failed to gain Board of Investment approval for its project.
The makers are required to roll out their new eco-cars by 2019.