Thai vehicle sales in 2007 are expected to fall 4.7% year on year due to political and economic uncertainty in post-coup Thailand, an automaker said on Tuesday.
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AFX News said Toyota Motor Thailand estimated that 650,000 cars and pick-up trucks would be sold this year, down from 682,500 in 2006, after a disappointing first half when vehicles sales plunged to some of their lowest levels in years.
The report noted that Toyota had previously forecast sales of 700,000 vehicles in 2007, but said the rising Thai currency, flagging consumer confidence and fall-out from a military coup last year are all impacting the industry.
But Toyota Thailand president Mitsuhiro Sonoda was optimistic, citing July sales figures – up 1.0% from last year, the first such gains in 2007 – as encouraging.
“In spite of continuing economic and political problems that persist to negatively impact the automotive industry, especially at the beginning of this year, we have recently seen signs of improvement in retail sales,” Sonoda told AFX News.
He reportedly said it had been “a difficult period for the auto industry in Thailand”, with a 10.8% drop of major manufacturers’ auto sales in the first seven months of 2007. In the first quarter, sales were down 18.7% year-on-year.
Sonoda reportedly said Toyota sales were down 5.4% to 151,533 units in the first seven months of the year and estimated the automaker would sell 280,000 vehicles by the end of 2007, with an increased market share.
“Our exports were significantly hit by the high baht currency appreciation,” he told AFX News.
The report noted the Thai currency has risen about 7% since the beginning of this year to hit 10-year highs, hurting exporters’ competitiveness, while consumer confidence slid to a five-year low in July.
It added that Thailand’s central bank last month slashed its key interest rate to 3.25% – the fifth rate cut this year – in a bid to spur sluggish consumer spending and curb the soaring baht.
According to AFX News, Toyota said car sales are expected to rise in August, September and October, while the outlook for November and December depended on the political climate. Thailand’s military leaders have promised elections by the year’s end.
