Looks like the worst is over for the Thai auto market, as the sales forecast for 2017 has been revised upwards to 800,000 units, from the earlier 780,000 units. Factors include the recovering economy and the expiry of the five-year lock-up period for vehicles bought under the first-time car buyer scheme, Bangkok Post reports.
According to Surapong Paisitpatanapong, spokesman for the Federation of Thai Industries (FTI) automotive industry club, Thai car sales are expected to jump by 6.7% to the 800k mark next year. If so, it will be the first increase in four years after a downward trend since 2013.
Thai car sales hit 1.45 million units in 2012, boosted by a tax break on first-time car purchases by the previous government, as well as strong demand after major floods hit several provinces in 2011. Sales fell to 1.33 million in 2013, 881,832 in 2014 and 799,592 in 2015. After weaker than expected results from the annual massive year-end car sale that is the Thai Motor Expo, the Detroit of the East is expected to end 2016 with sales of around 750,000 units.
Surapong cited the World Bank’s latest positive forecast on Thailand’s economy for 2017. Earlier this week, the World Bank increased its forecast for Thai GDP growth by 0.1 percentage points to 3.2% next year. Exports of goods and services are expected to rise by 1% in 2017, up from the 0.4% growth predicted for 2016, fuelled by strong US demand.
Cars bought under Thailand’s first car scheme under the Yingluck administration have to be kept for five years. This expires in September and will lead to new car sales.
“Some 20,000 to 30,000 buyers in the government’s first-time car buyer programme are expected to buy new cars, so the club is optimistic about market sentiment next year. I am also confident that financial institutions will ease their lending approval for car buyers once they witness a better economy and declining household debt,” Surapong said.
The expected recovery of the domestic market will power Thai automotive output, which is forecasted to grow by 2.6% next year to two million cars. Exports are expected to remain flat at 1.2 million units due to the uncertain global economy and declining oil prices.
In Malaysia, it will be another uncertain year ahead in terms of auto sales, which peaked at 666,674 units last year. This year, the November year-to-date total industry volume is 597,306 units, some 13.7% lower than the same period last year. With one month to go, the picture won’t be changing much once full year numbers are tabulated.
Looking to sell your car? Sell it with Carro.
I’m sure many of U guys are going 2 comments on the sales BUT i’m Not bcos the 6 beauty stole my words hence NO Comment here.
Datuk Mickey
If the 6 ladies are 60year oldies,n the car is a PrOTONG, the diehard fanboys will still BUY.
Protong fanboys will buy even if P1 produce the last Iriz or Suprima today….Undying support.
Why not? They sell cars not that wimminz
Yes. Undying sapot cuz we dun feel like dying early.
What a joke. In the 90s Malaysia was becoming the Detroit of Asia. But because of all the corruption going on, Jepunis and Mat Salleh decided to invest hundreds of billions USD into making Thailand the Detroit of Asia.
We lost hundreds of billions USD in investment and also hundreds of thousands of high paying jobs.
This is how much we have lost. If Malaysia was to have been the Detroit of Asia, today, we will be 1st world
Since when? bolehland never was Detroit of Asia. We try to take that title from Thailand since 80’s. That is one reason why p1 created mid 80’s n then p2 early 90’s.. Which car company u think a produce lot of car in boleh in the process to be Detroit of Asia?
Do thai become 1st world now? They are Detroit of Asia since 80’s
kunta kinte is like million of Malaysian living in own delusion caves.
Little they knew that Thailand have start manufacturing pick-up and car from Toyota, Nissan, Honda, Isuzu and Mitsubishi since early 80s with local source parts while Malaysia still only learn to assembly it like Lego.
Go back to your outdated junk Myvi
Thailand can dream on la.. must be so butt hurt this year sales also decline. Also malu coz their talk big forecast for 2016 also totally missed the mark. Hence quickly kepoh2 say 2017 will be positive to divert attention.
thailand…negara yg membangun….
If really reach 800k, bangkok’s jams will be more epicer than jakarta’s
Eh, I thought Mesia is the Detriot of Asean????
MY dun want be detroit of asia anymore, after seeing what happen to ori detroit. Next u will see robotic cyborgs policing the streets in detroit of asia.
This makes sense. No value just being an assembler of cars. Yes, you might get a lot of investments early on, but will we move up the value chain? Looks like Thailand is doing exactly the same thing they were doing 20 years ago.
AKUA QUIZ : One of the six beauty got “weapon” inside the skirt, guess right the answer u get the mazda 2.
Thailand TIV 800k with a 68 mil population. Indonesia TIV 1.1 mil with a population of 255 mil.
Malaysia TIV 600k with a population of 31 mil.
Malaysia also has the most protectionist motor industry policies.
If you are the CEO of a motor company, which country would you invest in?
TIV = local sales + export sales
Assume no stock?
Assume stock no change from previous year
thus Malaysia TIV = 600k + ?
Malaysia 30 million Ppl. car sales 600k
Thailand 70 million Ppl. Car sales 800k.