Economic growth expected to boost sales

Vudhigorn Suriyachantana-nont, vice president of Toyota Motor Thailand, foresees a continued growth in demand in May as the automotive industry shows fast recovery after last year’s floods. As all auto-makers have returned to normal production capacity, this should allow them to deliver vehicles booked during the Bangkok International Motor Show.

"This is in line with the Bank of Thailand’s economic growth revision – from 5.7 per cent to 6 per cent. Despite signs of higher inflation, several positive factors should further propel demand," he said.

The automotive industry expects total sales volume to reach nearly 1 million, after floods plunged last year’s volume to below 800,000 units. The recent motor show drew bookings for more than 50,000 units.

Thai Suzuki Motor expects its 2012 sales to increase by 50 per cent to 120,000 units, as the small auto-maker aims for a 6-per-cent market share. Last year, it sold 80,000 units.

Lertsak Navavimarn, general manager for sales and marketing, said that the company plans to launch new models every quarter, including two new models that have never been marketed in Thailand before. Backing this up will be the improvement of showrooms and the introduction of new marketing channels.

Subhead

"We have 250 distributors in Thailand. We will expand the number to the uncovered areas and areas with high market potential. We are set to help distributors design activities and promotion," he said.

He noted that the market this year is highly competitive, turn-ing it into a buyers’ market. While buyers are offered more choices, auto-makers need to promise maximum satisfaction.

According to data compiled by Toyota Motor Thailand, 367,109 vehicles were sold from January to April, with sharp growth in commercial vehicles. While passenger car sales rose only 1.7 per cent, commercial vehicles, which include 1-tonne pickups, showed 33.9-per-cent growth. Explaining this is the fact that the Honda Automobile (Thailand) plant in Ayutthaya reopened late in March. Moreover, economic recovery also spurred spending.

In April alone, 87,788 vehicles were sold, up 30.5 per cent year on year, thanks to new models launched at the motor show in March. Of the total, passenger cars accounted for 38,211 units, up 23.4 per cent from the same period last year. One-tonne pickup saled volume rose 34.8 per cent to 42,163 units.

During the month, Honda, the biggest manufacturer of passenger cars, sold 12,273 units – about 32 per cent of market share. Toyota, the No 1 seller, sold 13,939 units.