Thailand’s automotive industry is expected to bounce back in the fourth quarter after car sales fell by 43% in the first four months.
Motor shows have become a popular venue for car makers to showcase new models and promote sales. TAWATCHAI KHEMGUMNERD
Kwanchai Paphatphong, president of Inter-Media Consultant Co, organiser of the Thailand International Motor Expo, said the prediction is based on the political conflict seemingly ending following the military coup, with the assumption a new government will be set up very soon.
"While farmers are not our targets customers, the rice payments should help increase the overall spending of Thais," he said.
Mr Kwanchai forecast monthly car sales would rise to nearly 100,000 units in the last quarter compared with 70,000-80,000 units during the first four months this year.
The group projected domestic car sales will drop 20-25% from last year's figures of 1.33 million units. Car sales in 2012 were 1.45 million units.
An automaker survey reported domestic car sales the first four months fell by 43.1% to 297,431 units because the political situation hurt buying sentiment. The 30th Thailand International Motor Expo, held from Nov 29–Dec 10, 2013, was affected by the political turmoil.
Orders stood at 41,083 cars, a 52.2% drop from the auto show in 2012, while sales were down to 46 billion baht and visitors dipped 17% to 1.37 million. The event in 2012 saw 85,904 orders placed before the government's first-time car buyer incentives expired that December, with 1.65 million visitors and 76 billion in sales.
For this year’s expo, scheduled for Nov 29–Dec 10, Mr Kwanchai aims for purchase orders of 50,000 units worth 55-60 billion baht and 1.5 million visitors.
"I am hopeful about a recovery in Thailand’s automotive industry by year-end," he said.
Wallop Treererkngam, general manager of Suzuki Motor (Thailand) Co, also expects domestic car sales to fall to 900,000 to 1 million units this year.
"The overall economy including the automotive industry should grow in the second half," said Mr Wallop. "The massive cash flow from rice payments will stimulate the economy."
Suzuki’s sales in Thailand are expected to reach 50,000 cars this year, up from 45,200 in 2013. It will introduce its second locally made eco-car on May 29.