Economic slowdown in Thailand has Toyota lower its 2016 sales forecast

Toyota Motor Thailand (TMT) has revised its sales forecast for Thailand, while reaffirming Thailand as one of its key production hubs for the Asian region.

TMT has also highlighted that Siam Toyota Manufacturing (STM), its engine production plant in Thailand, topped the 10 million units mark in engine production in May 2016. STM is the second Toyota engine plant outside of Japan to hit a cumulative production volume of 10 million units.

"Due to the economic slowdown coupled with an unstable global economic outlook, auto sales in Thailand fell," said Kyoichi Tanada, president of Toyota Motor Thailand and Managing Officer of Toyota Motor Corporation.

Overall sales in the Thai market for the first half of the year amounted to 367,481 units, a year-on-year decrease of 0.4%. Over the same period, Toyota sales decreased by 11.4% to 109,078 units.

President Tanada commented on the second half of the year that, the outlook of auto sales in Thailand for 2016 is positive in some aspects. Toyota expects a positive impact from two key factors ― the continued spending by the government to stimulate investments to the private sector, and new vehicle entries introduced by various carmakers. However, the continued economic slowdown, limited purchasing power and an unstable global economic outlook means that more time is needed before we are able to witness a recovery in the auto market.

Toyota's projection for the overall Thai market in 2016 has been revised to 740,000 units, representing a 7.5% year-on-year decrease. Toyota expects to sell 240,000 units in Thailand in 2016.

President Tanada, however, expressed his confidence in Thailand's potential: "Even though this year is turning out to be another tough year, I, on behalf of Toyota, would like to reaffirm that Toyota will stand by Thailand with continued confidence in the readiness and capabilities of our Thai personnel. Toyota will continue its contributions to bring the automotive industry to a higher level, so that Thailand will grow and achieve greater advance in a sustainable manner."