The Federation of Thai Industries (FTI) is set to further cut its 2015 projection for car sales in Thailand from 850,000 units to 800,000, Bangkok Post reports. This comes a month after FTI revised down the forecast to 850,000 from the original 950,000. Added up, forecasted total industry volume (TIV) is down by 150,000 units, and it will be a third straight year of decline.
According to Surapong Paisitpatanapong, FTI’s automotive industry club spokesman, this development is due to negative factors such as slower-than-expected budget disbursement by the government. Only 40% of the fiscal-2015 budget was spent in the six months to end-March. “Now the Thai economy is in dire need of a cash injection to boost consumer purchasing power and private-sector investment,” he said.
Another factor is the tightening of approvals for hire-purchase loans from banks. Like in Malaysia, Thai banks are now more cautious in lending as the level of household debt has risen after the country’s first-time car buyer scheme ended in 2012. The rejection rate for car loans is now at 30-50% compared to 10% under normal circumstances, Surapong added.
Car sales in the first half of 2015 fell by 16.3% year-on-year to 369,004 units. The current situation is a far cry from the highs of of 2012 and 2013 at 1.45 million and 1.33 million units, respectively. In 2014, sales fell 33.7% to 881,832.
This latest round of downward revision comes after market leader Toyota cut its Thai sales target for this year to 280,000 units from an earlier projected 330,000. The Japanese giant reported 24.9% lower sales in Thailand in the first half and predicts that the full year TIV will be below 800k.
Wallop Treererkngam, sales and marketing director at Suzuki Motor Thailand predicted an even lower figure of 760,000, but Nissan Thailand president Kazutaka Nambu said the second half would likely see more sales activity ahead of a new excise tax regime (based on C02 emissions, E85 gasohol compatibility and fuel efficiency instead of just engine capacity) due to take effect early next year.
Last month, the Malaysian Automotive Association (MAA) released figures for the first half of 2015, which was down 3.5% compared to the same period last year. MAA blamed the mild decline in TIV on “consumer sentiment following implementation of GST” and revised down the full year TIV by 10,000 units to 670,000.
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thailand down but our MAA say our sales very good. Malaysia better than Thailand crap
In Thailand, you can get cheaper Toyota.
In Malaysia, you have to get Perodua, thanks to Proton and its protection. Proton should free condom along with new cars, coz Protection DA Best!
Wow that bad for thailand, sales revised bout 150k lower as compare to Boleh 10k..thai car is cheaper rite?
How many Proton Thailand car sales so far?
Not relevant, u ask wrong person…i oni see car industry as a whole not just p1.
Yes,I agree with kzm,irrelevant question you are asking. Next time stay relevant to the topic.
And learn to Google search!
*Dun be mad,have a treat:
http://www.marklines.com/en/statistics/flash_sales/salesfig_thailand_2015
If your answer of earnings compared to people purchase parity, answer is a no. Thais don’t earn more than Malaysians. It happens that basic necessities are cheaper there due to abundant supply than demand. However due to major urbanisation in Thailand, many people are unable to cope, hence causing the same situation as in Malaysia – Income disparity. Cheap is what Malaysians see, not as per the Thais’ perspective.
And dont forget, thailand has a lot more population than malaysia.
Thai abt 70 mil ppl,
Indonesia abt 220 mil
Malaysia abt 29mil
Federation of Thai Industries (FTI) latest forecast is still in dreamland lah.. too arrogant to admit that their market is collapsing, big-time.
The Suzuki Motor Thailand director was more realistic.
Full year 2015 result will be lower than 740,000 units.
According to dear leader, ini semua salah Najib and GST!
If no these 2, the Thais would have more to spend and buy more cars! Somemore their cars are so cheap compare to UMNOland.
So its all due to our Gov fault!
Typical inbred trying to sound clever lol what does the thai market have to do with ours? Sarcasm has to have a bit of logic to work la bang.
That is bn fault…