Thailand’s Automotive Industry set to grow by 15.4% in 2015
Automotive Press Releases Monday December 1, 2014 14:37
The most recent Ipsos forecast (September 2014) stated that 1.90 million units would be produced up to end-December-2014, which is 22.44% fewer than the quantity produced in the same period in 2013. The subsequent estimate from the main industry players is for 1.95 million units to be produced. Speaking at the end of November at an industry event in Bangkok, Thailand, Chukiat Wongtaveerat, Consulting Manager at Ipsos told representatives from the automotive industry in Thailand that Ipsos is forecasting that 2.25 million units would be produced up to the end of December 2015. This is 15.4% more than the units that the industry players are expecting to produce in 2014, based on current best estimates, said Mr Wongtaveerat.
This 2015 forecast from Ipsos Business Consulting assumes that the Eco car segment continues to make a positive contribution towards the growth of the sector, with players such as Mazda implementing their plans to exploit this emerging market. Ipsos noted that five OEMs had already secured Thai Board of Investment privileges for “Eco Car Phase 2”, with Toyota, Honda, Suzuki, SAIC and Volkswagen all having applications for BOI privileges under active consideration.
Sanpichit Songpaisan, Country Manager for Thailand, highlighted a need for continued caution on the increasing levels of household debt in Thailand, observing that the automotive industry should be wary of its potential impact.
“The automotive industry will welcome the expected return to growth in 2015, which will help to consolidate Thailand’s position as the ASEAN hub” Songpaisan says. “However, when looking at personal debt levels in Thailand, it should be noted that there is still no sufficient clarity on these significant risks for the automotive industry as well as those involved in auto financing. We could find that the financial institutions start to adopt much more rigorous criteria for screening and approval of auto loans, with a knock-on effect on domestic demand”.
With the demise of the second-hand car industry in Thailand in recent years, it adds to the problems encountered when having to deal with automobiles recovered from those who default on their auto loans.