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Thai trade cautiously optimistic about 2020 outlook | Automotive Trade Information
Thailand’s automotive trade expects the native automobile market to get well within the second half of subsequent yr, to complete the yr above 1m models.
Regardless of declining for the final 5 months, the native automobile market was nonetheless barely constructive within the first 10 months at 838,968 models and the Federation of Thai Industries (FTI) mentioned it nonetheless expects the market to stay above 1m models in 2019.
The market this yr has been affected by a pointy slowdown in financial development and tighter automotive mortgage standards by banks which has resulted in a major rise in mortgage rejections – particularly amongst small automotive patrons.
After a weak efficiency within the first half of 2020, towards robust yr earlier volumes, the FTI believes the market will get well within the second half of the yr to complete above 1m models in 2020 for the third consecutive yr.
Decrease rates of interest and authorities stimulus measures are anticipated to assist stabilise the market subsequent yr resulting in a second half restoration, Mazda Gross sales Thailand president Chanchai Trakarnudomsuk mentioned on the launch of the Bangkok Worldwide Motor Present on Friday.
Financial institution of Thailand can also be anticipated to loosen its lending tips for business banks to assist underpin the market’s restoration.
Different CEOs had been extra cautious, together with Mitsubishi Motors Thailand’s Morikazu Chokki who mentioned: “Thai GDP is anticipated to backside out within the second half of 2019, however general 2020 sentiment is tough to foretell. Native gross sales in 2020 usually are not anticipated to fall beneath 900,000 models, nevertheless.”
Tri Petch Isuzu Gross sales’ vice-president Takeshi Kazahara pointed to ongoing worldwide financial uncertainties, similar to Brexit, turmoil in Hong Kong, commerce wars, the US presidential election and the robust Thai baht as additional causes to be cautious. However he expects home stimulus measures will assist underpin native demand.