Thai auto sales forecasted to plunge nine percent in 2015 image

Japan’s Toyota, Thailand’s largest carmaker, announced recently it has trimmed its prediction for the overall Thai auto deliveries from all automakers for the entire year.

The move to downsize the forecast for the entire Thai auto industry to a 9 percent fall comes amid the weak performance of the second-biggest economy in Southeast Asia. Toyota Motor Corp’s Thai divison has predicted the nation’s overall auto sales for 2015 would recede to 800,000 units, a major turn of events since back in January they had expected the entire year to come up with a positive performance, with the Thai auto market soaring by 4.3 percent. If the prediction is accurate, the Thai auto market would slide for the third straight year, with the country being the largest auto manufacturing hub in the region. “The Thai economy has yet to fully recover, and with an unstable global economic outlook depressing consumer spending, this will also have an impact in auto sales this year,” commented Kyoichi Tanada, president of the Toyota Thai unit. “It will be the most challenging year for the car market for all of us.”

After the first six months of the year, total auto sales in Thailand reached 369,109 units, plummeting 16.3 percent from the same period last year. In 2014, the nation’s domestic auto deliveries tumbled 33.7 percent to 881,832 units, after the country was unsettled by political turmoil that ended in an army coup last May. Two years ago sales also slid because the government decided to end a subsidy program that helped first-time auto purchases.

Via Reuters