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Toyota Thailand president bullish on auto sales

By THE NATION

Sales of 650,000 units is possible this year, Tanada tells Suthichai

BANGKOK: -- Kyoichi Tanada, president of Toyota Motor Thailand, is bullish on the resurgence of the auto market after sales jumped 56 per cent to 103,000 units in the first two months of this year.

At the highest growth rate in 89 months, vehicle sales may even top 650,000 units this year due to the V-shaped recovery of the economy.

GDP is projected to expand 3.5-4.5 per cent after contracting 2.8 per cent last year.

In an exclusive interview with Nation Group Editor-in-Chief Suthichai Yoon at Toyota's main manufacturing plant in Baan Pho, Chachoengsao, Tanada said the prices of agricultural crops, especially rice and rubber, have also improved so prospective buyers in the provinces now have more purchasing power.

"The 650,000-unit target is achievable because pre-crisis sales figures were already in excess of 600,000 units," he said.

Sales should increase by more than 10 per cent this year from 2009's 550,000 units, he said.

Large truck and other commercial vehicle sales have accelerated - a key indicator that construction, farm, transport and other sectors of the economy are rebounding from the 2008-09 economic crisis, he said.

Sales of one-tonne pickup trucks should also revive shortly because their demand is related to bigger trucks and other commercial vehicles, he said.

Vehicle sales dropped 10.7 per cent to 548,000 units last year while pickup sales alone fell 18.2 per cent to just 264,000 units.

On the other hand, passenger cars were up 1.42 per cent to 230,000 units last year. Past sales records show that pickup sales usually account for over 60 per cent of |total auto sales, but their share dropped to just 50 per cent of the market.

At least three risk factors could hurt auto sales this year, Tanada said. Interest rates are on the uptrend. If there is a significant rate hike, businesses could exercise caution, thus dampening sales of new vehicles.

If world crude oil prices surge far higher than the current US$81-82-per-barrel range, auto sales could be hit.

And if the domestic political situation deteriorated and turned violent, sales could also be hit.

Toyota is committed to green products so it will introduce more hybrid vehicles here after launch-ing the Camry hybrid recently, he said.

However, the world's largest carmaker has no plan to enter the eco-car segment yet, even though Nissan has already launched its first eco-car, which is required to run at least 20 kilometres on a litre of gasoline.

Honda will unveil its eco-car later this month.

"Our hybrid cars are fun to drive, fuel-efficient and environmentally friendly. Yet, we're keen to support the government's eco-car project and expect to launch our eco-cars within one or two years," he said.

The massive recalls of Toyotas in the US, European and Chinese markets have not affected the Thai market or Thai consumers' confidence in the Toyota brand, he said.

Most Toyotas sold here are assembled with locally-sourced parts, so they are not the same as models recalled in the US and elsewhere, he said.

Auto parts made in Thailand are exported to more than 100 countries worldwide and there have been no quality problems reported, he added.

-- The Nation 2010-03-22

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