Car exports climb to 24-month high

Car exports climb to 24-month high

Mideast sales add heft to strong September

Honda cars await shipment at Laem Chabang port. CHUMPOL CHAIKANARAKKUL
Honda cars await shipment at Laem Chabang port. CHUMPOL CHAIKANARAKKUL

The Federation of Thai Industries (FTI) is optimistic about the country's automotive sector in the remaining months of 2017 after the sector logged its strongest export performance in two years in September.

The FTI's automotive industry club reported yesterday that car exports in September rose by 7.2% year-on-year to 120,654 units -- a 24-month high -- as Middle East shipments grew for the first time after shrinking over the past few years.

Exports to other regions remained healthy, with the exceptions of Asia and Central/South America.

Export value last month rose by 8.4% year-on-year to 63.67 billion baht, Mr Surapong said.

For January to September, exports totalled 849,982 units, down 5.6% year-on-year, while export value came to 449.4 billion baht, down 6.5%.

Club spokesman Surapong Paisitpatanapong said that if export volume in the last quarter reaches 300,000 units, total volume for 2017 will hit 1.15 million units, surpassing the club's projection of 1.1 million.

"We expect the economy in the Middle East to recover soon, which is a key factor in importing pickup trucks from Thailand," Mr Surapong said. "With all the optimistic sentiment, total car output is expected at 1.978 million units in 2017, higher than the club's target of 1.93 million units."

The club said car output in September rose by 9.9% year-on-year to 190,272 units, a third straight monthly increase.

Output in January to September stood at 1.478 million units, up 0.1% year-on-year.

Car sales in September surged 21.9% year-on-year and 14.2% month-to-month to 77,592 units, marking a ninth straight monthly upturn.

Sales volume in January to September was up 11.5% at 620,715 units.

Mr Surapong said the car market is expected to perform at its highest level in the fourth quarter because each car distributor is featuring promotional campaigns, plus the Thailand International Motor Expo will run from Nov 30 to Dec 11.

Moreover, local economic sentiment is viewed as strong enough to drive the car market, Mr Surapong said, citing higher crop prices, growing tourism, rising exports, recovering private investment and acceleration of state budget disbursement.

"With all these positive factors, we project sales volume of 245,000 units in the fourth quarter, bringing full-year car sales to 850,000-860,000 units, higher than the club's forecast of 830,000 units," he said. "2017 is a good year for car distributors because the market is now climbing after a four-year bearish period following expiry of the Yingluck Shinawatra government's first-time car buyer scheme."

He said car output could reach 2 million units again next year.

Thailand's automotive industry has been in development for nearly six decades. Output achieved an all-time high of 2.457 million units in 2013, propelled by massive back orders after the tax rebate scheme for first-time buyers expired in 2012 -- a year that saw production of 2.453 million units.

In those two years, Thailand was ranked ninth among countries for automotive manufacturing.

Do you like the content of this article?
COMMENT