Thailand August. Toyota holding 40% of a market down 3 months in a row

Thailand vehicles market

Thailand vehicles market in August losing 6.8% from the previous year, with 67.595 sales. The Top 3 brands kept a flat trend, with Toyota holding 40% of share. Nissan, Mazda and Ford fell in double-digits, while Subaru hit a stunning +255%.

Economic Environment

Thailand economy expanded at the weakest pace in nearly five years in the second quarter as a strong baht weighed on tourism and exports, while an uncertain global economic outlook likely dampened domestic investment plans. Moreover, a prolonged severe drought has been negatively affecting agricultural output. Despite decelerating, private consumption growth was relatively strong as households benefited from low interest rates and subdued inflation.
Available data for Q3 suggests that growth is recovering, with exports rebounding in July and imports posting the first expansion in six months—a sign that domestic demand could be improving. In an attempt to rekindle economic growth, on 20 August, the government unveiled a stimulus package worth USD 10 billion, focusing on farmers, low-income earners and tourism.

Market Trend

Thailand vehicles market, crucial for the country and producing over 1 million vehicles per year, started the 2017 coming out from a really harsh period. Indeed a “crazy” government incentive run in the 2012 had generated a big bubble of sales with doubling 2012 sales at the record volume of 1.43 million followed by a fall to a minimum of 768.000 units in the 2016, more or less the same level of the 2011.

A recovery started just in the 2017, positively impacted by the possibility, after 5 years of ownership, to re-sell vehicles purchased during the “first car buyers” 2012 incentive campaign. Indeed according to data released by the Thai Automotive Industry Association the 2017 total vehicles sales have been 871.644 (+13.4%).

In the 2018 the Thai market improved again. Indeed, the marked signed a second consecutive annual gain, ending with registrations at 850.012. After keeping a positive trend during the entire year, sales have increased by 21.9% from last year.

The 2019 started under a good star, following the previous year’s positive trend with January sales up a stunning 20.7% with 64.629 registrations. February remained on the same positive line with 66.471 year-to-date sales (+8.5%).

In March, sales went up again a sturdy 12.7% with 84.596 units, leading to year-to-date 215.696 registrations (+13.6%).

In April, the market is still following the previous months’ positive trend (+10.4%) with 69.855 units, as well as in May (+2.6%) with 71.383 units sold. However, in June the market signed the first decline since December 2016, losing 2.8% with 71.599 units sold.

In July, registrations declined by 2.3% with 66.193 units sold, while in August the market lost 6.8% with 67.595 sales, leading year-to-date figures at 562.321, still up 4.8%.

Competitive Arena

Brand-wise, the year-to-date dominator of the market, Toyota is on top of the ranking with sales up 14.9% at 224.078 units.

Honda was second with 87.332 units (+7%) followed by Mitsubishi with 59.862 (+10.6%), Nissan with 44.601 units (-0.5%), Mazda with 41.324 (-9.9%), Ford with 34.853 (-20%), MG with 16.747 (+6.1%), Suzuki with 16.499 (-10.3%), Chevrolet with 10.076 (-17%) and in 10th place Mercedes with 9.659 (-4.1%).

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Rank 2019Rank 2018BrandSales Aug YTD 2019Sales Aug 2019+/- YTD 2019+/- Aug 2019Share YTD Aug 2019Share Aug 2019

Rank 2019Rank 18GroupSales Aug YTD 2019Sales Aug 2019+/- YTD 2019+/- Aug 2019Share YTD Aug 2019Share Aug 2019
11Toyota Group224.38227.12014,9%0,0%39,9%40,1%
22Renault Nissan Alliance104.46312.3945,6%-2,8%18,6%18,3%
33Honda Motor87.33211.6097,0%2,7%15,5%17,2%
55Ford Group34.8533.831-20,0%-35,4%6,2%5,7%
67SAIC Motor16.7471.8986,1%-1,6%3,0%2,8%
88General Motors10.076855-17,0%-52,3%1,8%1,3%
99Mercedes Daimler9.6591.337-4,1%-11,4%1,7%2,0%