Customer Logins
Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Customer LoginsNew vehicle sales in Thailand up 16% y/y in May; production and exports also grow
New vehicle sales in Thailand continued to show improvement for the second consecutive month, mainly owing to government measures to boost spending and state investment in infrastructure projects, and low base of comparison.
IHS Automotive Perspective
- Significance: Thai new vehicle sales grew by 16% year on year (y/y) in May as vehicle production rose 24.7% y/y, driven by both domestic and export demand, the latter increasing 11.9% y/y during the month.
- Implications: The recent uptick has slowed the rate of decline in Thai vehicle sales to -2% for the year to date, as production rose 3.8% y/y, while vehicle exports declined 2.3% y/y during the first five months of 2016.
- Outlook: IHS expects Thai automotive industry will remain sluggish in 2016 owing to the subdued economy. Light vehicle sales in the country are expected to fall by 8.8% y/y to 701,035 units, while light-vehicle production in the country will grow by 1% y/y to 1.91 million units, mainly thanks to CBU exports of sports utility vehicles (SUV) and C-Car segment vehicles that are expected to get stronger. Vehicle exports from the country will grow by 1.9% y/y to 1.25 million units.
New vehicle sales in Thailand grew 16% year on year (y/y) during May to 66,035 units, according to data released by the Thai Automotive Institute (TAI). Vehicle production during the month rose 24.7% y/y to 168,394 units, while exports of completely built-up (CBU) units went up 11.9% y/y to 99,547 units. For the year to date (YTD), total domestic sales are down 2% y/y at 302,581 units, although production remains in the positive territory with growth of 3.8% y/y to 813,505 units. Meanwhile, CBU exports by Thai automakers stood at 487,798 million units for the five months, marking a decline of 2.3% y/y.
By brand, the market leader and official compiler of automotive data in the country, Toyota, posted an increase of 23.8% y/y to 22,244 units in May, giving it a market share of 33.7%. Isuzu came second with 12,757 units (up 17.3% y/y), followed by Honda at 9,812 (up 10.6% y/y). Following Honda was Mitsubishi with monthly sales volume of 4,274 units (up 26.6% y/y), Nissan with 3,856 units (up 2.7%), Mazda with 3,522 units (up 23.4% y/y), and Ford with 2,951 units (up 16.2% y/y).
For the first five months, Toyota sold 87,368 units, representing a decline of 13.6% y/y. Toyota was followed by Isuzu with 61,119 units, marking a jump of 4.6% y/y, Honda with 43,949 units (down 6.2% y/y), Mitsubishi with 24,484 units (up 22.9% y/y), Nissan with 19,488 units (down 14.2% y/y), Mazda with 17,868 units (up 28.6% y/y), and Ford with 14,232 units (up 22.2% y/y).
Outlook and implications
New vehicle sales in Thailand continued to show improvement for the second consecutive month, mainly because of government measures to boost spending and state investment in infrastructure projects, according to Federation of Thai Industries. The growth in sales during the month was also helped by the low base effect, as new vehicle market in Thailand registered 18.3% y/y decline 56,942 units in May 2015.
Looking ahead into 2016, the overall Thai economy will be subdued, with expected GDP growth of 2.9%, according to IHS data. We expect that the automotive industry will remain sluggish. High household debt will continue because of the poor economic conditions and low income that prevailed throughout 2015. We expect light vehicle sales in the country will fall by 8.8% y/y to 701,035 units in 2016. Sales in the country will be led by the Isuzu D-Max pickup with 114,054 units, despite being forecast to register a decline of 4.6% y/y this year. The C-PUP segment will continue to be the best-selling segment this year with sales of 299,416 units (down 9.2% y/y), capturing a market share of 42.7%. It will be followed by B-Car segment with sales of 163, 421 units (down 12.7% y/y), and a market share of 23.3%.
Thailand is an established global vehicle manufacturing centre and a key location in the Association of Southeast Asian Nations (ASEAN) region. It has become an important production base for many global automakers, such as Ford, Mazda, Nissan, Mitsubishi, Honda, and Toyota, as they can gain easier access to sourcing and supply from the ASEAN region and reduce export logistical costs since Thailand has free-trade agreements (FTAs) with several nations. We expect light-vehicle production in Thailand is set to pick up slightly in 2016, thanks to CBU exports of sports utility vehicle (SUV) and C-Car segment vehicles that are expected to get stronger. We forecast light-vehicle production will grow by 1% y/y to 1.91 million units, while vehicle exports from the country will grow by 1.9% y/y to 1.25 million units.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.