Car makers are voicing concerns over potential post-election instability and wage increases that could challenge Thailand's automotive market, despite this year's healthy sales projections.
Chanchai Trakarnudomsuk, president of Mazda Sales Thailand, said investors and companies are concerned about the post-election period and whether MP candidates can form a new coalition government.
"One possibility is a new government gathering roughly 250-260 MPs, which is not enough to pass many important policies and projects with a roughly equal number of opposition MPs," he said. "Business operators are concerned about what will happen politically after the election."
But Mr Chanchai said the local car market in 2019 is projected to perform well, with many car companies riding potential post-election momentum.
Toshiaki Maekawa, president of Tri Petch Isuzu Sales, said post-election sales would return to normal, with the local market reaching 1.05 million units sold in 2019.
"The general election is a good sign for the country, while the existing government could administrate the country to carry on and mobilise the business, investment and consumption sectors," he said.
Mr Maekawa said the company is calling for the new government to continue policies to support and maintain the strength of Thailand's automotive industry as a global production hub.
"In Thailand, 60% of annual vehicle output goes to export, and the production of pickup trucks is the key engine for this industry," he said. "Isuzu calls for fair taxes between passenger cars and pickup trucks in a bid to create more competitiveness in the local market."
Moreover, Mr Chanchai of Mazda said a hike in the daily minimum wage, proposed by many parties, is worrying for the company because the rates have increased sharply for the past several years from 175 baht to 330 baht, while business operators cannot avoid passing on the rising labour cost on top of price tags for customers.
The political campaigns offered a new rate of up to 425 baht a day.
"We are okay with the current rate, which is reasonable," Mr Chanchai said. "Many automotive plants normally plan to offer overtime income, higher than the normal hiring rate, to their employees, so the hike of minimum wage will also lift the base of labour costs in the automotive sector."
Achana Limpaitoon, president of the Thai Auto Parts Manufacturers Association, said many operators are opposed to the plan to hike the daily minimum wage, which is not in line with higher skills required from labourers.
"It would pressure many plant operators to invest more in robotics and automation to avoid the increasing labour cost," she said.
Mrs Achana said the association expects the new government to upgrade the automotive industry with attractive policies to encourage car makers to expand their production facilities in Thailand because many of them have invested heavily in neighbouring countries but have no plans for here.
In a related development, Grand Prix International Plc is organising the 40th Bangkok International Motor Show from March 27 to April 7 under the theme "Enjoyment of Automobiles" at Impact Muang Thong Thani.
Last year's edition of the motor show saw bookings of 36,587 units, up 18% from 2017.
Some 1.62 million visitors attended the 14-day auto show in 2018, down from 1.65 million a year earlier.