New vehicle sales in Thailand fell by 25.4% year on year to 98,251 units in July, from 131,646 units a year earlier, according to data released by the Federation of Thai Industries.
Deliveries of vehicles sold under the Thai government’s first-time buyer incentive programme, which expired at the end of 2012, have started to dry up. Stricter lending imposed by local banks also is holding back demand.
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Furthermore, there is growing concern in the market that the recent flood of new entry level cars in the market will lead to a sharp decline in used car prices.
Cumulative sales for the seven month period were up by just over 13% at 839,046 units, from 736,483 units in the same period of last year.
Vehicle production fell by 6.4% to 201,446 units in July, but was up by close to 21% in the first seven months of the year at 1,542,405 units.
Vehicle exports fell by 14% to 82,710 units in July, but were up by 11.5% year to date at 617,076 units.
