Thailand production and sales are decreasing strongly
- Thai automotive production has benefited from the strong growth of its local market for over a decade (Shifting from 700 000 PC+LCV in 2005 to 1 400 000 PC+LCV in 2012). The country was also boosted thanks to the decision carmakers took the make Thailand the hub for mid-range Pick-ups marketed worldwide. Most of the Toyota Hilux, Mitsubishi L200, Isuzu D-Max, Ford Ranger, Mazda BT-50 are manufactured in Thailand.
- Thus throughout the years Thailand has become the 9th producing country worldwide, ahead of Canada, Spain and France. Since the beginning of 2014, the country’s production levels have suffered from a strong decrease (-28% over 8 months, reaching only 1 250 000 units). The local market has decreased by 38% over the first 8 months of the year to under 600 000 units. Exports are stagnating (at +1.7%), reaching 750 000 units.
- The reason for which the Thai automotive market is experiencing such a strong slowdown this year is mainly explained by the political crisis that arose at the beginning of the year and the discontinuation of government incentives for the purchase of new cars, namely the « First ownership » bonus that ended in 2012.
- In 2012 the Thai automotive market increased by 80% thanks to these incentives. By 2013, the market had already started to decline, decreasing by 7.7% to reach 1 300 000 units. In 2014, the downfall continued and got worse and we expect to end the year with an annual volume of 900 000 vehicles sold.
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