Toyota leading way to projected auto-industry sales record of 1.2m

Toyota itself now plans to build 50,000 more units in the Kingdom than previously projected, hitting a record of its own.

Toyota Motor Thailand (TMT) president Kyoichi Tanada said yesterday during the company’s half-year press conference that it had decided to raise projections for the auto market from the initial forecast of between 1 million and 1.1 million units to the 1.2-million mark, based on increasing demand.

During the first six months, auto sales in Thailand reached a record 606,523 units, surging by 40.4 per cent over the same period last year. 

“The growing domestic sales have been contributed by strong demand in the market boosted by government stimulus programmes,” he said, adding that vehicle production affected by last year’s flood has returned to normal and is growing as well.

Among boosters for the auto industry are the government’s eco-car and first-car-buyer programmes. The latter offers rebates of up to Bt100,000 per vehicle for people buying their first car or pickup truck.

“As much as 50 per cent of sales for models such as the Vios and Yaris are to first-time buyers,” said Wichien Emprasertsuk, senior vice president at TMT, referring to the company’s two subcompacts.

Toyota remained the top-selling brand in Thailand during the first six months with sales of 241,245 units, up 54.3 per cent from the first half of 2011.

The company also exported 204,554 vehicles worth Bt92 billion during this period, up by as much as 50.3 per cent because of the increasing number of markets. OEM (original equipment manufacturing) exports reached Bt31.3 billion. Toyota CBU (completely built-up) exports are expected to rise by 61 per cent this year to 405,000 units worth Bt177 billion, in addition to OEM parts worth Bt65.7 billion, totalling Bt242.7 billion. 

“With the capacity of our plants being raised over the years, our intention is also to expand both domestic sales and exports, using Thailand as the manufacturing base,” Wichien said.

TMT exports only 3 per cent of its production to Europe, while a large number of Vigo pickups are shipped to the Middle East.

Tanada said Toyota initially planned to assemble more than 815,000 vehicles in Thailand this year, but has raised the target by 50,000 units to 865,000. Additional capacity will come from the Thai Auto Works and Gateway factories, which have undergone expansion worth a combined Bt8 billion. TMT’s previous full-year production record was 631,000 units in 2010.

“In 2012 Toyota’s [domestic Thai] sales target is projected at approximately 480,000 units, divided into 182,100 passenger cars and 297,900 commercial vehicles,” 244,100 of which will be 1-tonne pickup trucks, he said. 

The company plans to introduce an improved version of the Hilux Vigo and commence production of a van this year. It is scheduled to launch its eco-car in 2013.