Tuesday, July 8, 2008
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Thailand vehicle exports display robust growth
Tuesday, July 8, 2008
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Thailand's vehicle exports grew 27.5% year-on-year to 320,880 units in the five months to May 31, with the value rising 30% to 144.82 billion baht equivalent in foreign exchange, according to Suraphong Phaisitpattanaphong, spokesman for the Federation of Thai Industries' industry automobile club.
Australia and New Zealand remained the largest markets, accounting for 26% of total vehicle exports, driven by lower tariffs under free trade agreements. Other major markets were Japan (25%), the Middle East (19%) and Europe, Africa and Latin America.
Overall, Thai-made vehicle exports are projected at 770,000 units this year.
Mr Suraphong said auto engine exports in the first five months rose 96% year-on-year to 7.26 billion baht while other parts and accessories increased 36% to 54.07 billion baht and spare parts gained 32% to 3.69 billion baht.
Motorcycle exports dropped 14% to 617,768 units, but export values rose 6% to 11.33 billion baht.
Total vehicle production in the five months to May climbed 20% year-on-year to 588,640 units, of which 323,763 were built for export and the remaining 264,877 for the domestic market.
Passenger car production rose 40% to 164,029 units but one-ton pickup trucks increased only 14% to 416,253 units. Production of motorcycles dropped 4% to 1.32 million units.
Mr Suraphong said local pickup truck sales this year would be healthier than in the past two years even though diesel prices have risen rapidly. Sales of pickup trucks in the past two years contracted by 6-7%.
The pickup market is expected to grow 7% this year thanks to the government's policy of pumping money into the economy.
However, runaway diesel prices might trim pickup truck market growth this year.
Consumers have shifted to buying cars, especially those compatible with E20 fuel, which is six baht cheaper than premium petrol and much cheaper than diesel.
[Source : Bangkok Post July 7,2008]
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