Thailand's auto market has exhibited a turnaround in 2017 after four years of contraction. The major impetus for this could be the recovering purchasing power of the general public and launches of new models attractive to consumers. KResearch holds the view that total auto sales may have reached around 860,000 units in 2017, which would thus be up 11.6 percent over 2016.
The auto market should continue its uptrend in 2018, in particular, the passenger car category, because more new models are soon to arrive. Consumer purchasing power is relatively healthy. Our estimate for total sales in 2018 is 880,000-900,000 units, which would represent over-year growth of 2-5 percent.
From 2018 onward, more electrical vehicles (EVs) are expected to enter the market and the sales in 2018 will likely increase by 1.7x YoY to a total of at least 30,000 units, compared to estimated sales of 11,200 units in 2017. Hybrid and should take up at least two-thirds of the EV market, followed by plug-in hybrids and battery EV cars, respectively. However, KResearch views that their selling prices will be a determining factor for prospective buyers.