Vol. 5: No. 1, January 2010

Auto output back in positive territory

(The Nation, 25.12.2009)

Auto production last month was in positive territory for the first time this year, with output at the highest level for 13 months thanks to increased consumer confidence and the government's stimulus measures.

November vehicle sales in the local market also marked the highest level this year, the Automotive Industry Club under the Federation of Thai Industries said yesterday.

Club spokesman Surapong Paisitpatnapong said 120,985 |automobiles were produced, a |year-on-year increase of 4.26 per cent and 5.17 per cent above the October level.

The production of passenger cars grew by 7.53 per cent from November last year to 36,534 units.

The figures for commercial trucks and one-tonne pickups also rose year on year, by 2.86 per cent and 2.47 per cent, respectively.

Auto production in the first 11 months of the year came in at 887,656 units, down 32.21 per cent from the same period last year.

The club is confident the full-year total will exceed 1 million, having seen higher-than-expected orders from Motor Expo 2009.

Domestic auto sales in November totalled 57,031 units, up 23.8 per cent from the same month last year and 7.06 per cent higher than in October. Aggregate sales in the first 11 months were 476,786, down 14.3 per cent from a year earlier.

"Many crop prices increased [lifting farmers' incomes], while the government's economic stimulus measures were also implemented. So, consumers have the confidence to spend," Surapong said.

Production for the export market in November was 64,181 units, growing 2.89 per cent from the same month last year due to increased orders from Asian markets and Australia. Output for the domestic market was 56,804 vehicles, a year-on-year increase of 5.86 per cent.

Surapong said the club forecast auto production rising next year to 1.2 million units, in line with the global economic recovery. Carmakers have experienced increasing orders this quarter.

Thailand's automobile production capacity currently stands at 1.8 million units a year.

He added that next year's forecast output is likely to be split equally between local and overseas sales.

The Automobile Industry Club forecasts production in the December to February period coming in at 345,880 units, which would represent a 1.9-per-cent rise over the previous three months and 58.57 per cent higher than the 218,125 vehicles made in the same period a year ago.

Adisak Rohitasune, vice chairman of the Federation of Thai Industries, yesterday said the Industrial Confidence Index in November remained stable, but forecast a surge over the next three months thanks to increased production volumes and orders.