Japanese car maker Toyota Motor Thailand is considering a cut to its sales target, saying the Thai economy and auto market have not recovered as fast as expected.
Based on January figures, sales for the company and the overall market still appear to be in the doldrums, president Kyoichi Tanada said on Wednesday.
Toyota's sales fell by 23.4% in January to 20,094 units, while the country's overall car sales slid 12.8% to 59,721 units.
"Overall domestic sales are unlikely to reach 920,000 units this year as projected if only 60,000 units can be sold in a month," Mr Tanada said.
"Toyota's sales would not live up to the expectation of a 0.9% increase this year to 330,000 units."
Mr Tanada painted a bleak picture for Thailand's automotive industry, saying the country could see car sales drop for a third consecutive year in the worst-case scenario to 820,000 vehicles, down 7% from 2014.
Thailand's domestic car sales reached 1.45 million in 2012 and tallied 1.33 million in 2013, propelled by the first-time car buyer scheme and strong demand after floods hit Bangkok and several provinces in 2011.
Sales fell by 33.7% in 2014 to 881,832 vehicles, depressed by political turmoil and low prices for farm products.
Despite the pessimistic sales outlook, Mr Tanada, also the managing officer for Toyota Motor Corporation, said the parent company remained committed to the Thai government's eco-car scheme.
Toyota Motor Thailand's application won approval last November from the Board of Investment for the second phase of the government's eco-car project.
The local unit plans to invest 10.4 billion baht to produce 100,000 vehicles a year.
Toyota was also one of five companies (the others being Mitsubishi, Honda, Nissan and Suzuki) to take part in the first phase of Thailand's eco-car scheme when it launched in 2007.
According to data from the auto industry club of the Federation of Thai Industries, 91,342 eco-cars were sold last year, down by 56.7%.
In a related development, Mr Tanada called on the government to study the feasibility of promoting hybrid vehicles and parts production, as well as electric vehicles.
Toyota and several other car makers are pushing the idea of hybrid and electric models that would be entitled to lower excise tax.
Under the new excise tax for vehicles, due to take effect in early 2016, hybrid vehicles would be subject to a 10% tax, as opposed to 12-14% on eco-cars and 25-30% on other passenger cars.
The new tax regime will be based on carbon dioxide emissions, E85 gasohol compatibility and fuel efficiency — rather than engine size, as under the current structure.
Yesterday, Toyota introduced its facelifted Camry locally.
Made at the company's plant in Chachoengsao, the new Camry's price tag ranges from 1.319 million to 1.899 million baht.