The Thai domestic vehicle market bounced back in February with a 13.6% rise in new sales to 53,429 units, compared with 47,038 a year earlier. This latest increase more than offset the 2.8% decline in January, bringing the two-month total to 103,883 units – 5% higher than a year earlier.
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While the industry remains moderately upbeat about the market’s prospects for 2006, rising interest rates – albeit from historically low levels – and growing domestic political unrest are adding to the overall sense of uncertainty in the short term. In the last month, calls have been growing for Prime Minister Thaksin’s resignation amid allegations of corruption and abuse of power.
The market continues to be driven by the light pickup truck segment, which saw volumes rising by 8.2% to 71,087 units in the first two months of 2006. All suppliers experienced rising volumes and contributed to an increasingly competitive market environment. Isuzu regained the title of Thailand’s best-selling pickup truck brand, with sales rising by 13.4% to 28,257 units. The Chevrolet version also performed strongly, with volumes rising 16% to 3,571 units.
Mitsubishi saw its new Triton (L200) pickup outselling by 13% its predecessor a year earlier, with volumes rising to 5,051 units. Toyota’s pickup truck sales rose by 7% to 25,750 units, enough only to claim second place.
Passenger cars – tipped to lead Thai vehicle market growth this year – have so far failed to excite the market. Sales volumes dropped 2.6% in the first two months of 2006 to 26,653 units, mostly due to a sluggish start in January. In February, sales were virtually static at 14,311 units, though Toyota – surprisingly – reported an 11.3% drop to 12,355 units. Honda picked up the spoils, with a 13.1% rise to 9,837 units.
The Indonesian new vehicle market continue to struggle with high interest rates and abnormally high levels of inflation following a succession of fuel price increases last year. Sales of light and medium vehicles, including trucks up to 6 tons GVW, declined 56.8% year on year in February to 25,954 units – according to data released by Toyota.
In the first two months of the year, volumes dropped 57.6% to 52,566 units.
Tony Pugliese
