Toyota motor Thailand bracing for car sales slump amidst political uncertainty

Toyota Motor Thailand predicts a further decline in car sales this month due to the ongoing political uncertainty surrounding the formation of a new government and its policies. Thailand held a General Election on May 14, with the Move Forward Party (MFP) securing the most seats in the House of Representatives. However, it is still uncertain whether the party can form a successful coalition government with its seven allied parties.

The political uncertainty is causing potential car buyers to delay their purchases as they wait for clarity on the new governmentโ€™s economic policies, according to Suphakorn Rattanawaraha, vice-president of Toyota Motor Thailand. In April, domestic car sales dropped by 6.14% year-on-year to 59,530 units, attributed to banksโ€™ strict loan screening criteria amidst high household debt, as reported by the Federation of Thai Industries (FTI).

From January to April this year, car sales experienced a 6.11% year-on-year decrease, reaching 276,603 units. Surapong Paisitpatanapong, vice-chairman of the FTI and spokesman for the FTIโ€™s Automotive Industry Club, expressed his belief that a newly established government would boost the confidence of commercial banks and financial institutions, alleviating their concerns about granting loans to car buyers.

Despite a 9.8% year-on-year decline in domestic car sales last month, Toyota Motor Thailand maintained the largest market share at 32.9%, selling 19,565 units. Isuzu followed with a 22.4% market share and a 19.6% year-on-year drop in car sales, selling 13,336 units. Meanwhile, Honda reported a 25.5% year-on-year increase in car sales with 6,409 units sold in April, securing a 10.8% market share, reported Bangkok Post.

The political uncertainty in Thailand has been affecting a lot of business sectors negatively, with the SET dipping 3% in the first week after the election. It has contracted 132 billion baht or 1.7% since the election. In addition, due to recently implemented land and building tax rules, Bangkokโ€™s tax revenues have been declining significantly. Read more about the story HERE.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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