Slim growth seen for car industry in 2016
THE THAI AUTOMOBILE industry is expected grow only slightly next year as consumers' purchasing power continues to be weak, despite the government's injection of huge budgets into infrastructure.
Surapong Paisitpatnapong, vice chairman and spokesman of the Federation of Thai Industries’ Automotive Industry Club, said purchasing power would not improve much next year because people were still worried about their future incomes as well as because of persistently high household debts.
He said that although the government was investing in infrastructure projects that would generate income for people, a lot of them still needed to get rid of their household debts before buying big-ticket items like cars.
This year, car companies in Thailand are expected to produce between 1.95 million and 2 million units, an increase from 1.85 million last year. However, only 750,000 are likely to be sold in the domestic market, lower than last year’s 800,000 units.
“Car sales this year have not really improved, and this may continue through next year as the government plans to increase car taxes,” Surapong said.
Meanwhile, the Board of Investment (BOI) yesterday held a conference on investment, chaired by Prime Minister Prayut Chan-o-cha. The conference attracted 2,000 businesspeople, local and foreign investors, and industrialists.
General Prayut said the government had been working with many countries in a bid to drive the economy and draw in investment and business expansion.
The integration of the Asean Economic Community is an opportunity for investors, particularly in areas being promoted as clusters and “super clusters” across the country.
This year, more than 1,923 projects have been approved by the BOI with total value of Bt539 billion. The new investments are expected to go into 20 provinces across the country and that should help increase people’s incomes.
