Honda Automobile (Thailand) feels more positive about its full-year prospects after sales surged in the first two months of 2015.
Marketing general manager Sompop Patipanthada said Honda's sales rose by 42.6% year-on-year to 18,892 vehicles in the period, bucking the overall market, which saw an 11.8% dip to 123,670.
The Japanese car maker's strong sales were attributed partly to back orders for some new models, especially the Honda HR-V sport-utility vehicle launched last November. While the HR-V has secured 15,000 bookings, just 8,000 have been delivered to customers.
Honda expects 2015 sales to increase by 10% to between 110,000 and 120,000 vehicles.
Last year, Honda reported a sales drop of 50% to 106,482 vehicles.
In 2012 and 2013, sales surged to 171,208 and 213,155 vehicles, respectively, in the wake of massive floods in late 2011 and amid the first-time car buyer scheme in 2012. Honda's Ayutthaya factory was the only car plant to be inundated in 2011, prompting it to close for six months.
Chief operating officer Pitak Pruittisarikorn predicts the domestic car market will come in at 880,000 vehicles this year amid a slow economic recovery.
Thailand's domestic car sales reached 1.45 million in 2012 and 1.33 million in 2013. But sales fell by 33.7% last year to 881,832, depressed by political turmoil and low farm prices.
"After the first-time car buyer scheme, domestic sales have fully returned to normal, about 700,000 to 900,000 vehicles a year," Mr Pitak said.
A second factory in Prachin Buri province is scheduled to start making subcompact cars next March with annual capacity of 120,000 vehicles after postponement this year. Production of auto parts in the province will start this October.