Thai car exports might see flat growth this year as the recovery of the global economy is proving much slower than expected, the Bangkok Post reports. Asia and Oceania aside, overseas demand for Thai-made cars are expected to remain sluggish.
In 2015, car shipments from Thailand rose 6.81% to 1.21 million units, helping to offset weak domestic sales, which fell by 9.33% to 799,592 vehicles. The Federation of Thai Industries (FTI) automotive industry club projected in January that car exports could possibly inch up by 1-3% this year to between 1.22 and 1.25 million.
Exports are important to maintain production volume as domestic auto sales are expected to be around 750,000 to 780,000 units this year, down 2.5% to 6.2% from 2015. Should it slide as expected, 2016 will be a fourth straight year of decline.
The Thai market is still reeling from the impact of the new excise tax that took effect in January, according to FTI spokesman Surapong Paisitpatanapong. The new tax is based on CO2 emissions, E85-gasohol compatibility and fuel efficiency instead of engine capacity alone; and this has caused prices of most cars to increase. In anticipation, many accelerated their car purchases in the second half of last year. This trend was also seen in Malaysia, although the reason behind our 2016 price hikes is different.
“The World Bank recently cut its global economic growth forecast to 2.9% this year from 3.3%. The bleak outlook will hit Thailand’s export prospects, including those for the auto industry. Each country is now trying hard to boost their economies and relying on local production instead of importing from others,” Surapong said.
FTI reported that vehicle shipments stood at 104,712 units in February, down 3.2% year-on-year, as eco car demand from Europe and North America slowed. However, export value went up by 14.43% last month to 55.64 billion baht, thanks to exports of high-cost pick-up passenger vehicles (PPVs), which surged 137% to 14,162 units.
For the year so far, exports for January and February combined fell by 1.09% to 198,426 units, but the combined export value of 106 billion baht was up 18.3% y-o-y. 25,864 PPVs were shipped, a surge of 142%, with the Asian market accounting for 60% of total exports. The three big PPV models – Toyota Fortuner, Mitsubishi Pajero Sport and Ford Everest – are all fresh and coming to Malaysia in the very near future.
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Flat growth does not matter. What matters is that we have lost so much of money going to Thailand. Last year alone, Thailand exported US$25 billion in automotive parts and cars. That is just one year alone.
Imagine, that could have been us. In the 90s, we were heading to be the Detroit of Asia. Everybody CKD in Malaysia cause Malaysia was so vibrant. Now, we lost all that.
3 things we have lost.
1) US$25 billion in exports. If we even taxed 20% of what is exported, we will get RM23 billion! And that is one year lone ie from 2015. Imagine the last 25 years?
2) We lost hundreds of thousands of jobs to Thailand. All these jobs could have gone to fellow Malaysians
3) We lost hundreds of billions in factory and plant investment in Malaysia. Now, Thailand is benefiting from all this. It even totals to RM Trillions all the investment that the Japanese and the white man have pumped into Thailand.
The Thai Government is so happy. Their rakyat so happy. Few hundred thousand jobs for their rakyat. Very well paying jobs.
Don’t care thailand, only concern on MAI make “self-praise statement” and “empty promise” every year… and AP system OWNERS can gain more profit (millions counting per annual just too little) AP owners want billions per annual shares !!!!
Your comment looks more like a politician. Where did you get the data? Please, if you have no fact and want to talk lousy politic here, pls talk to your party blog lah
Let me tell you the facts, Malaysia never ever seem as the Detriot of Asia since beginning.
In Thailand between 1978-1991 completely banned CBU car and in 1983 force CKD car to contain 50% of local part.
https://en.wikipedia.org/wiki/Automotive_industry_in_Thailand#Local_content_promotion
Any manufacture that want to sell their car in Thai must CKD their car completely with 50% of local contain. By 1984 only left the Japs(except Subaru), Ford and Mercedes car available in market thru official dealer.
In Indonesia, Toyota already locally design and built Kijang since 1975.
Where is Madani Sahari and MAI? they always come here and goreng about TPPA, NAP and all that. Already 10 years MAI come here and talk rubbish. But 10 years, every month, got car company investing billions in Thailand.
If we have our own national car.
We should be more proud, sir.
We jealous you guys on this.