Battered Thai auto market on the rebound, led by Toyota

Thailand’s auto market, so badly hit by last year’s massive floods, is now on the rebound. Most carmakers based there have resumed production at normal levels, Bangkok Post reports, except for Honda, which Ayutthaya plant is scheduled for reopening by the end of March.

Leading the rebound is Thailand’s market leader Toyota, which managed to rake in almost half of January 2012 total sales. The market saw a 11.5% year-on-year increase to 76,246 units last month, and of this pie, Toyota carved itself a 47.4% share. The brand’s sales in the month increased 34.8% year-on-year to 36,151 units, three times what they managed in December 2011.

You’ve got to feel for Honda, widely acknowledged as the worst hit among carmakers based in Thailand. The company sold just 332 units in January, a 100% drop from the same period in 2011.

“The total output increase partly helped carmakers clear their pre and post-flood order backlogs. But the passenger car market could not keep up with the overall vehicle market since some carmakers could not resume their production,” said Toyota Motor Thailand’s senior VP Vudhigorn Suriyachantananont.

Vudhigorn predicted that the upward momentum will continue as more carmakers normalise production. Also, the Thai government has introduced stimulus packages that include tax rebates for first time car owners and pay increases for civil servants.

The floods did not directly affect Toyota’s three auto plants in Samut Prakan and Chachoengsao, but like every other carmaker, they had to cut production due to lack of parts. GM was in the same situation, and is also bouncing back strongly. Despite the flood, Chevrolet sold 31,595 units in 2011, up by 58% from 2010. This form has continued into 2012 – Chevy shifted 3,785 vehicles last month, a 95% year-on-year increase.

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