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Customer LoginsThai new-vehicle sales climb 10.5% y/y in January
New-vehicle sales in Thailand returned to positive territory during January, mainly on a low base effect.
IHS Markit Perspective:
- Significance:Thai new-vehicle sales went up by 10.5% year on year (y/y) in January to 57,254 units, with Toyota remaining the leading automaker with a 26.3% market share.
- Implications:Most of the automakers have revealed their growth targets for 2017. They aim to fight each other for control of the local market by bringing in new models.
- Outlook:IHS Markit forecasts light-vehicle sales in the country will grow by 5.3% y/y to 735,542 units in 2017.
New-vehicle sales in Thailand went up by 10.5% year on year (y/y) during January 2017 to 57,254 units, according to data released by Toyota Motor Thailand, the official compiler of automotive data in Thailand. Passenger vehicle (PV) sales went up by 23.5% y/y during the month to 20,228 units, while commercial vehicle (CV) sales grew by 4.5% y/y to 37,026 units.
By brand, Toyota posted an increase of 9.5% y/y to 15,075 units in January, giving it a market share of 26.3%. Isuzu came second with 13,197 units (up 19.5% y/y), followed by Honda with 7,866 (up 40.1% y/y), Mitsubishi with 4,809 (up 0.2% y/y), Nissan with 3,533 (down 16.9% y/y), Ford with 3,469 (up 34.8% y/y), and Mazda with 3, 283 (down 6% y/y).
Furthermore, the Federation of Thai Industries (FTI) expects that vehicle sales in the country will grow by about 4% y/y to 800,000 units in 2017.
Outlook and implications
New-vehicle sales in Thailand returned to positive territory during January after slipping 3.9% y/y in 2016 to 768,788 units, according to FTI data. Growth during the month can be attributed to a low base of comparison. During the same month in 2016, vehicle sales declined 13.2% y/y to 51,821 units as some of the demand had been pulled to the fourth quarter of 2015 because of a planned increase in excise tax from 1 January 2016.
Thailand is the second-largest light-vehicle market, including PVs and light commercial vehicles (LCVs), in the Association of Southeast Asian Nations (ASEAN) region, after Indonesia. It is forecast to account for 23.6% of the total light-vehicle sales in the region in 2017, according to IHS Markit's light-vehicle sales forecast data.
Looking further ahead into 2017, most of the automakers have already declared their sales targets and growth plans. Toyota forecasts that its sales in the country will rise 8.1% y/y to 265,000 units, giving it a market share of 33.1%. This is split between PV sales of 111,000 units, up 27.2% y/y, and CV sales of 155,000 units, down 1.8% y/y. To achieve its target, Toyota is expected to launch two new vehicles in the country this year (B-Hatch and B-Sedan in our database), according to our data. It recently launched a refreshed version of the Vios sedan.
Honda Thailand aims to sell 120,000 units in 2017, up 12% y/y. It also aims to achieve a 10% y/y increase in vehicle production to 220,000 units this year. To achieve its target, the automaker recently launched a refreshed version of the City model. Honda Thailand is also expected to launch the next-generation CR-V sport utility vehicle (SUV) in the first quarter of 2017. Furthermore, Honda also plans to idle one of the two assembly lines at its plant in Ayutthaya Province by the end of March, as it aims to reduce the large gap between capacity and output. The automaker assembled only 200,000 units in Thailand in 2016, less than half of its total capacity of 420,000 units per year. The Brio and another compact model assembled at the first line in Ayutthaya will be moved to the second line.
Mazda is aiming to achieve 18% y/y sales growth in 2017 to 50,000 units and to capture a market share of 6%. In a bid to achieve its target, the automaker plans to launch six new or refreshed models this year, including the CX-9 SUV and MX-5 RF sports car. In January, the automaker launched a facelifted version of the Mazda 3 model, known globally as the Axela. Mazda also plans to open six to eight new dealership and service centres in the country this year.
Isuzu Thailand expects to register a 2% y/y increase in sales during 2017 to around 146,000 units, giving it a market share of 18%. The automaker expects sales of its pickup trucks to increase by 8.3% y/y to 130,000 units this year.
IHS Markit forecasts light-vehicle sales in the country will grow by 5.3% y/y to 735,542 units in 2017, up from an estimate of 698,261 in 2016, mainly on an increase in government spending, the launch of eco-cars, the expiry of the five-year lock-up period for vehicles bought under the first-time car buyer scheme, which started in 2012, and a low base of comparison. Our forecasts show that around 36 new or refreshed models will be launched in the country this year.
The second phase of the eco-car programme was announced in 2013, with the aim of manufacturing 1.58 million units. The minimum capacity for eco-car models approved in the second phase was set at 100,000 units a year within five years of production, while excise duty on an eco-car was to be levied at 14%, while those compatible with Euro V emission standards could enjoy a 12% rate. New phase-two eco-cars must emit no more than 100 g of carbon dioxide/km, down from 120 g for existing eco-car models. Fuel efficiency must be 4.3 litres/100 km, up from 5 litres in the first phase. Engine displacement should not exceed 1.3 litres for gasoline models and 1.5 litres for diesel models. Ten automakers, including the five existing eco-car manufacturers, applied for the second phase of the scheme and received approval from Thailand's Board of Investment (BoI) in 2014.
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.