Private sector has positive outlook for the auto industry

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BANGKOK, 12 May 2015,  Inter-Media Consultant Co. Ltd., organizer of Fast Auto Show Thailand 2015, has claimed that the auto sector stabilized over the first quarter of this year and would recover during the second half of 2015. 

Executive Director of Inter Media Consultant Chalatchai Papatpong reported that auto sales in March stood at 74,117 units, an 11.7 percent decrease compared to the same period last year. Total sales for the first quarter of 2015 was 198,787 units, a drop of 11.8 percent from 2014.

Mr. Chalatchai attributed the drop to the recovering local economy, low agricultural export output and high household debt rate, which resulted in financial institutes tightening their loan policies and low spending from the household sector.

However, the Inter Media Consultant executive remained optimistic towards the sector’s outlook, saying the auto market would recover during the latter half of the year. He cited positive factors such as the government’s economic stimulus programs, recovering export sector and new vehicle models recently unveiled by various manufacturers.

He said another positive factor is the administration’s tax restructuring plan, which is expected to give tax breaks to new car owners.