Thailand's new vehicle market continued to decline in December, by 14.4% to 86,858 units from 101,464 units a year earlier, according to data released by the Federation of Thai Industries (FTI).
After showing encouraging signs of recovery in the second and third quarters of last year, the vehicle market reversed sharply in October, in line with an overall slowdown in business activity in the country immediately following the death of King Bhumibol Adulyadej.
Sales of passenger vehicles dropped by 15.4% to 29,500 units last month, from 34,800 units a year earlier, while pickup truck sales fell by 13.8% to 46,500 from 53,900 units.
Go deeper with GlobalData
Full-year vehicle sales were 3.9% lower at 768,788 units, compared with 799,592 units in 2015.
The automotive industry expects a moderate market recovery in 2017, helped by the end of the five year lock up period for buyers of cars under the previous government's 2011-2012 first-time buyers' programme.
Buyers under this scheme will be able to trade in their vehicles this year without losing the 10% tax rebate.
Mazda Sales (Thailand) president Chanchai Trakarnudomsuk told local reporters he expects around 100,000 participants in the first time buyer programme to buy a new vehicle this year. The company hopes to increase its sales by 18% in 2017 helped by six new model launches, sales network expansion and aggressive marketing.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataNissan Motor (Thailand) president Antoine Barthes expects the overall market to expand by 8-10% this year. Earlier this month, the company launched the new Note under the second phase of the country's Eco-Car programme.
Nissan was already a participant in the first Eco-Car programme, which provides tax breaks and other benefits to automakers that achieve minimum output and export targets for qualifying fuel-efficient small cars.
The FTI said it expects a 4% increase in total vehicle sales to around 800,000 units this year, with the domestic economy lifted by low interest rates and rising consumer confidence.
