Scania Siam, the local distribution arm of the Swedish bus and truck maker, says the company is unlikely to meet its sales target for 2019 because of a contraction in Thai commercial vehicle sales.
The truck and bus market has shrunk for three consecutive years, while GDP has risen slightly.
Newly appointed managing director Stina Fagerman said the market in 2019 has many obstacles, including a sluggish economy and an export contraction.
"Our customers are affected by these risks as they cannot export as much as expected," she said.
Scania markets only heavy-duty trucks, sized above seven tonnes. Mrs Fagerman said the market totalled 13,800 truck sales during January to October, down by 11%.
Scania sold 300 trucks for the period, down from the target of 700 for the year.
"Heavy-duty truck sales in Thailand remain a huge market for Scania, but the company needs to minimise all current risks to maintain sales and quality of services throughout our 11 sites in the country," said Mrs Fagerman.
She said the bus market also decreased to 600 units of new sales in the first 10 months of the year, down 20% from the same period last year.
Scania sold 56 buses in the period. For 2019, Scania had projected over 100 units sold.
"Thailand is a global tourism destination, but transport to other provinces saw aggressive competition from low-cast carriers and bus operators," said Mrs Fagerman.
Scania Siam provides four product types to the local market: trucks, buses, engines and used trucks.
Scania expects to sell 15 engines and 45 used trucks in 2019.
In February, Scania inaugurated an 800-million-baht assembly plant in Samut Prakan that produces cabs, tractors and bus chassis.
The new plant occupies land in the Bangkok Free Trade Zone after relocating from Chachoengsao province. The site has 100 employees for production and logistics, purchasing and R&D.
Thailand is the third country after Sweden and Brazil where Scania set up a cab manufacturing facility.
Mrs Fagerman said the factory makes new-generation trucks, delivering up to 5% lower fuel consumption and meeting the Euro 6 emissions standards.
"The production serves the Thai market, but Scania is studying export potential as well," she said. "The other challenges for bus and truck makers are traffic jams and environmental logistics. Scania will deliver more sustainable and reliable vehicles, encouraging customers to invest in these technologies."
She said Scania is supporting the government's policy for biodiesel B20 for trucks and buses.
"Scania's diesel engines are compatible with all types of biodiesel up to B100," said Mrs Fagerman.