Thailand: Vehicle production to achieve record high in 2013
Exports expected to increase while domestic demand weakens in the second half
2013/09/13
- Summary
- Production of compact passenger cars continues to grow for Jan.-Jul. 2013
- Thai government approves second phase of eco-car project
- Toyota, Honda, Nissan, SAIC Motor and UD Trucks to build new plants
- Japanese OEMs: Toyota, Honda, Nissan, Mitsubishi, Suzuki and Mazda's activities
- Ford and GM introduce EcoSport and Spin; SAIC Motor to build JV plant
- UD Trucks to build commercial heavy-duty truck for emerging markets
- Production Forecast by LMC Automotive: Thai production to surpass 3 million in 2016
Summary
Vehicle production in Thailand for the period of Jan.-Jul. 2013 increased by 20.8% year-on-year (y/y) to 1.54 million units. Production for domestic sales surged as backorders boosted by the First Car Buyer Rebate scheme have been filled. In the latter part of 2013, however, Thailand's automakers are expected to shift their focus to overseas shipments. The Federation of Thailand Industries (FTI) forecast that the country's 2013 production will reach 2.55 million units, another record high following last year's result (FTI forecast presented in February has been retained as of August 2013). Vehicle sales in Thailand for January through July grew to 840,000 units, up 13.6% y/y. Toyota Motor Thailand anticipates that 2013 sales will fall by 9.5% y/y to 1.3 million units (announced in June 2013).
LMC Automotive's forecasts that Thai light vehicle sales for 2013 are expected to fall by 10% y/y to 1.27 million units. The decline comes after a spectacular 81% growth in 2012 as demand through 2014 had been pulled forward by the First Car Buyer Rebate scheme. As OEMs have completed backorders in the first half, sales will be lower in the second half of 2013 and in 2014. LMCA retains its long-term forecast that sales will recover from 2015 and gradually increase towards 1.5 million by 2020.
Related Reports:
Vehicle market summary： Thailand first half 2013 (Sep. 2013)
Japanese suppliers build new plants and enhance R&D in Thailand (Apr. 2013)
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