Record month for auto exports as home sales slow

The Automotive Industry Club of the Federation of Thai Industries yesterday reported that 103,065 units were exported last month, up 17.96 per cent year on year and 24.61 per cent quarter on quarter.
Shipments were valued at Bt47.98 billion, some 12.87 higher than in August last year.
The export value for engines, however, was down 5.11 per cent year on year to Bt2 billion, while auto-parts shipments rose 15 per cent to Bt16.6 billion and spare-parts exports increased 8.88 per cent to nearly Bt1.92 billion
Despite the solid export performance, the sector witnessed a drop in production as domestic demand fell.
The industry churned out 193,074 units last month, down 9.94 per cent year on year. The number also marked the first time that monthly output was below 200,000 in the past 15 months.
FTI chairman Payungsak Chartsutipol yesterday insisted, however, that automotive output this year should come in at 2.55 million units, as previously expected. The export target of 1.15 million units is also being maintained.
While the auto industry enjoyed brisk export demand, manufacturers in other sectors were less happy, with weak overseas demand a factor dampening the overall confidence of Thai manufacturers last month.

TISI sinks to 22-month low

The Thailand Industries Sentiment Index (TISI) in August dropped to 91.3 points from 91.9 the previous month, the lowest level for 22 months and now below the benchmark 100 points for 14 consecutive months.
Aside from weak export demand, manufacturers were concerned with the slowing domestic economy and rising production costs.
The FTI conducted the August TISI survey on 1,031 operators in 42 sectors. The confidence of small businesses dropped to 88 points from 88.6 in July, while that of medium-sized businesses fell to 91.9 from 92.8 and that of large businesses stood at 94.3, down from 94.4.
However, the expectation index rose to 98.1 points from 97.2 in July, thanks to confidence in an improvement in sales orders and financial performance.
In the first eight months of the year, global demand helped sustain the automotive sector’s growth.
While 1.735 million units were produced, up 16.4 per cent year on year, 720,141 vehicles were exported for a combined value of Bt328 billion. Volume and value rose 12.42 per cent and 7 per cent respectively from the same period last year.
The export value of engines in the eight-month period was more than Bt17.8 billion, down 9.28 per cent year on year, while that of auto parts was over Bt124.5 billion, up 10.61 per cent.
The export value of spare parts exceeded Bt12.5 billion, down 6.5 per cent on the same period last year.
The number of passenger cars produced in August stood at 82,188 units, down 5.54 per cent year on year, while 762,150 cars were made in the first eight months of the year – accounting for 43.91 per cent of total vehicle production, and up 41.79 per cent.
Passenger-car production for export last month stood at 112, 394 units, representing 58.21 per cent of overall vehicle output.
August was also the first month in 20 since the severe flood of late 2011 that production for export surpassed that for domestic sales. Export output in the month rose 33.76 per cent year on year.
Export production during January to August was 738,559 units, accounting for 42.55 per cent of overall output and up 13.95 per cent from the same month last year.
Production for domestic sales in August was 80,680 units or 41.79 per cent of total production, down 38.11 per cent year on year. Output during January to August was 996,955 units or 57.44 per cent of total production – up 18.28 per cent from the first eight months of 2012.
Domestic car sales last month totalled 100,289 units, down 22.6 per cent year on year but up 2.07 per cent quarter on quarter. Car sales during the January-to-August period were 939,342, up 8.2 per cent year on year.