Thailand's auto sales likely to grow by 5% in 2013

BANGKOK, March 26 (TNA) - Japan-based Honda Automobile (Thailand) Co. says that automobile sales in Thailand is returning to normal this year and should grow by 5 per cent to some 1.4 million units. Adisak Rohitasune, Senior Vice President of Honda Automobile (Thailand) Co., pointed out on Tuesday that the Thai government's first-car buyer policy has caused domestic auto sales to soar last year. Adisak acknowledged that the Thai government's new 2-trillion-baht infrastructure development projects should also boost the growth of the domestic automobile market because contractors will buy more vehicles for their businesses. Adisak confirmed that Honda will continue to use Thailand as its largest automobile production base in the 10-member Association of Southeast Asian Nations (ASEAN) and not to relocate its plants to neighbouring Indonesia. The senior auto executive noted that the value of the Thai baht should stay around 30 baht a US dollar and should not appreciate beyond the level of 29 baht a US dollar, cautioning that the ongoing appreciation of the Thai currency should have serious impacts on Thai auto exports. Surapong Paisitpatanapong, Spokesman of the Automotive Industry Club under the Federation of Thai Industries (FTI), reported, meanwhile, that there are signs buyers are cancelling their orders for new vehicles they placed last year due to delayed deliveries and their purchasing power. The spokesman noted that the deliveries of about 600,000 automobiles are overdue and have been postponed from last year to this year, assessing if over 20-30 per cent of automobile orders are revoked, Thailand's auto production should fall short of its target of 2.6-2.7 million units this year. The spokesman projected that good domestic auto sales should continue this year, especially those of compact cars and pickup trucks, saying that he will wait to see automobile orders over the next couple of months, including those in the upcoming Bangkok International Motor Show. The FTI spokesman also predicted that Thailand's exports of automobiles should rise to some 1.1 million units this year and the domestic sales should increase to 1.5 million this year, from 1.43 million units last year. (TNA)