Asian Honda Motor, the local unit of Japan's Honda Motor, expects its exports from Thailand this year to reach Bt70 billion, a 32-per-cent drop from last year.

Exports of Honda-brand automobiles, motorcycles, power products, parts and components reached Bt51.5 billion during the first nine months, down 37 per cent compared with the same period last year, Asian Honda Motor president and CEO Fumihiko Ike said in a statement yesterday.

However, Honda exports in the third quarter saw a lower decline than in the first two quarters of the year, indicating initial signs of a recovering market. Exports dropped 21 per cent year on year, compared to falls of 40 per cent and 46 per cent in the first and second quarters.

"Our third-quarter performance represents a significant improvement as the global economic situation started to recover. Meanwhile, we are continuing to develop new products in order to ensure our competitiveness in the global market. Last September Honda launched the new PCX scooter model in Thailand as a world premiere. Thailand will soon begin production and export of this model to many leading countries. This is further proof of Thailand's competitiveness as a global manufacturing base," said Ike.

Honda attributes its improving exports of completely knocked-down units to an increase in production volume in many Asian countries.

The company exported 30,052 units to more than 40 countries in the first nine months. The City subcompact was the most successful export model with 11,505 units, followed by the Civic compact (7,484) and Jazz subcompact hatchback (5,189). These three models accounted for 80.5 per cent of the volume.

Honda's figures are in line with the Federation of Thai Industries automotive industry club's data, which indicate a recovery in the sector.

The FTI said that in the first nine months, Thailand churned out 651,000 vehicles -a 39-per-cent decrease year on year.

The output of passenger cars showed the smallest drop, with 209,000 units or a 32-per-cent decline.

As to pickups - Thailand's product champion - 432,000 were made in the period, representing a 42-per-cent drop.

Meanwhile, nine-month vehicle exports slumped 39 per cent year on year to 363,000 units, with value dropping 37 per cent to Bt170 billion.

Output in the current quarter is expected to be 316,000 vehicles, 20 per cent up from the third quarter but 2 per cent down from the same period last year, according to the FTI.