FTI sticks to decline in car sales

FTI sticks to decline in car sales

Despite rising car sales in April, the Federation of Thai Industries still views a decline in car sale for 2016. (Bangkok Post file photo)
Despite rising car sales in April, the Federation of Thai Industries still views a decline in car sale for 2016. (Bangkok Post file photo)

The Federation of Thai Industries (FTI) has maintained its projection of domestic passenger car sales at 750,000-780,000 units this year despite witnessing a recovery in pickup truck sales.

This year's sales are expected to decline by 2.5-6.2% from last year's figures.

According to data from the FTI's automotive industry club, domestic car sales in April rose slightly by 1.7% to 54,986, boosted by a 13.9% increase in pickup truck sales to 23,019 and a 92.4% surge in passenger pickup vehicles to 4,609.

Club spokesman Surapong Paisitpatanapong said the government's stimulus measures, launched late last year, should drive positive momentum in the industry.

In addition, demand for medium-sized trucks saw a sharp increase of 49.6% to 875 units in April thanks to the development of megaprojects.

However, Mr Surapong said Thailand's overall car sales from January to April declined by 6.1% to 236,546.

"Greater speed of investment budget disbursement by the government can play a significant role in recovery," he said, adding that it would also push the private sector to gear up on their new investment projects.

Shipments of domestic vehicles in April fell by 2% to 80,491 but value rose by 10.2% to 43.1 billion baht.

Thailand's total car exports in the first four months declined by 5.39% to 388,251 but saw an increase of 11.1% in value to 207 billion baht.

The country's vehicle output in April rose by 11.5% to 138,237 units but slightly declined by 0.52% to 654,111 units in the first four months.

In another development, FTI chairman Chen Namchaisiri said the Thai industries sentiment index (TISI) in April stood at 85 compared with 86.7 in March.

The index has stayed below 100 points for 47 consecutive months since June 2012.

Mr Chen said the FTI projected the TISI over the next three months will average 97.2.

Do you like the content of this article?
COMMENT