Tax cut may take 2012 auto sales to 2 million
Auto sales are expected to reach 2 million units next year, driven by the government's policy to reduce the excise tax for first-car buyers, according to the Automotive Industry Club under the Federation of Thai Industries (FTI).
The ratio of domestic sales to exports is expected to be fifty-fifty, club spokesman Surapong Paisitpattanapong said yesterday. Total sales are forecast at 2 million units, up 11 per cent from this year's sales target of 1.8 million.
The Cabinet recently approved a reduction in the excise tax of up to Bt100,000 for first-car buyers who purchase 1.5-litre passenger cars, and is likely to expand the scheme to cover 1.6-litre vehicles.
Surapong said the policy would benefit carmakers next year. However, the club is concerned about a parts shortage, so it will discuss this matter with parts manufacturers soon.
Auto production during the first eight months of this year was around 1.1 million units, an increase of 5.23 per cent from the same period last year. In August alone, output was 153,180 units, an increase of 8.6 per cent from the same month in 2010, and up 4.04 per cent from July this year.
However, production for export during January-August this year was roughly 565,000 units, a decline of 4.54 per cent from the same period last year. Production for export in August was 73,480 units, a drop of 10.47 per cent from August last year.
Surapong said the Automotive Industry Club estimated auto production during September-November this year would reach 534,139 units, an increase of 17.64 per cent from production in June-August, and up 18.15 per cent on September-November 2010.
