Bangkok, Thailand : Thailand's automotive sector is likely to recover this year as vehicle sales pick up due to improved business and consumer confidence in the post-election environment, according to California-based Frost & Sullivan, a global growth consulting company.
Kavan Mukhtyar, partner and head of the automotive and transport practice for Asia Pacific, said new vehicle sales this year were expected to increase 7% to 675,000 units. Vehicle sales for the first three months to March increased 18% year-on-year as more new models were introduced and momentum from 2007 sales has carried over into this year.
Mr Mukhtyar said rising global oil prices may prompt a revision in retail fuel prices in Thailand. ''With the price of crude oil crossing US$120 per barrel, some amount of adjustment in the fuel price is likely. A rise in fuel prices will benefit models with high fuel efficiency and low cost of ownership,'' he said.
As a result, smaller compact cars are likely to become more popular. The implementation of the eco-car project by the end of 2009 would encourage sales of smaller fuel-efficient cars in the longer term. By 2012, new vehicle sales are projected to reach 943,000 units, representing average growth of 8.6% per year from 2008. In terms of trends, he said automakers were likely to provide high-tech add-ons such as navigation and entertainment systems as optional upgrades instead of the usual accessory makeovers or cosmetic facelifts to cater to more sophisticated consumers.
Automakers will also keep adding safety features and focusing more on after-sales services to differentiate themselves from the competition. Looking at trends across Asean, Mr Mukhtyar said fuel price increases had made total cost of ownership a significant purchase criterion for consumers. Smaller compact vehicles will therefore see faster growth.
In the four largest Asean markets _ Thailand, Indonesia, Malaysia and the Philippines _ Mr Mukhtyar said vehicles sales in Indonesia were forecast to reach 515,000 units, up 18% from 2007, a relatively high level compared with only 7% growth for the other three countries. A reduction in financing rates and expected economic growth of 6% were likely to stimulate vehicle purchases. In Malaysia, vehicle sales are forecast at 521,200 units this year, up 7% from 2007 thanks to the favourable economic environment, rising pent-up replacement demand, sales carry-over from 2007 and new model variant launches. In the Philippines, vehicles sales were likely to reach 126,000 units this year, up 7% from 2007 driven by demand for commercial vehicles designed for both personal and business use, and new model launches last year. He noted that 2007 was the first time the Philippine industry had achieved sales of more than100,000 units since 1997 as used-car imports were halted and the industry gave consumers more vehicle choices and new car models.
[Source : Bangkok Post 20/05/2008]
Kavan Mukhtyar, partner and head of the automotive and transport practice for Asia Pacific, said new vehicle sales this year were expected to increase 7% to 675,000 units. Vehicle sales for the first three months to March increased 18% year-on-year as more new models were introduced and momentum from 2007 sales has carried over into this year.
Mr Mukhtyar said rising global oil prices may prompt a revision in retail fuel prices in Thailand. ''With the price of crude oil crossing US$120 per barrel, some amount of adjustment in the fuel price is likely. A rise in fuel prices will benefit models with high fuel efficiency and low cost of ownership,'' he said.
As a result, smaller compact cars are likely to become more popular. The implementation of the eco-car project by the end of 2009 would encourage sales of smaller fuel-efficient cars in the longer term. By 2012, new vehicle sales are projected to reach 943,000 units, representing average growth of 8.6% per year from 2008. In terms of trends, he said automakers were likely to provide high-tech add-ons such as navigation and entertainment systems as optional upgrades instead of the usual accessory makeovers or cosmetic facelifts to cater to more sophisticated consumers.
Automakers will also keep adding safety features and focusing more on after-sales services to differentiate themselves from the competition. Looking at trends across Asean, Mr Mukhtyar said fuel price increases had made total cost of ownership a significant purchase criterion for consumers. Smaller compact vehicles will therefore see faster growth.
In the four largest Asean markets _ Thailand, Indonesia, Malaysia and the Philippines _ Mr Mukhtyar said vehicles sales in Indonesia were forecast to reach 515,000 units, up 18% from 2007, a relatively high level compared with only 7% growth for the other three countries. A reduction in financing rates and expected economic growth of 6% were likely to stimulate vehicle purchases. In Malaysia, vehicle sales are forecast at 521,200 units this year, up 7% from 2007 thanks to the favourable economic environment, rising pent-up replacement demand, sales carry-over from 2007 and new model variant launches. In the Philippines, vehicles sales were likely to reach 126,000 units this year, up 7% from 2007 driven by demand for commercial vehicles designed for both personal and business use, and new model launches last year. He noted that 2007 was the first time the Philippine industry had achieved sales of more than100,000 units since 1997 as used-car imports were halted and the industry gave consumers more vehicle choices and new car models.
[Source : Bangkok Post 20/05/2008]
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