Vehicle production in Thailand increased sharply in the first two months of 2008, thanks to strong export sales and a recovery in domestic demand after two years of decline.
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Production of passenger cars and commercial vehicles reached 231,680 units in the January-February period – up 27.4% year on year, according to the Federation of Thai Industries (FTI). Around three-quarters of output comprised one-tonne pickup trucks.
Vehicle exports rose 37.5% to 132,683 units and are now substantially higher than production for the domestic market, which amounted to 98,997 units.
All Thai pick-up truck plants now supply global markets, after Nissan Motor overhauled its Siam Nissan Automobile Assembly joint venture last year to produce the new Navara pick-up for both domestic and export sales.
The FTI now forecasts vehicle production to reach a record 1.4m units in 2008, 12% higher than last year’s 1.25m. Output is expected to be supported by strengthening domestic demand now that the political uncertainty of the previous two years has been resolved following the peaceful outcome of last December’s general elections.
While export demand will likely be affected by the slow-down in global economic growth, a broader range of export models will help support Thai output. Demand in some key markets in Asia also continues to grow strongly.
The domestic market expanded 15.1% to 94,657 units in January and February, compared with the 82,249 units sold in the same period of 2007.
Of these, Toyota sold 38,496 units for a market share of 40.7%, followed by Isuzu with 21,334 units and a 22.5% share and Honda with 13,777 units and a 14.6% share.
Tony Pugliese
