Isuzu’s exports from Thailand is expected to stay flat this year as demand from the critical Middle East market place is set stay slow, Bangkok Post reports.
Last year, Isuzu’s shipments from Thailand slipped 11% to 160,000 units. Toshiaki Maekawa, president of Tri Petch Isuzu Sales, the Thai distributor of Isuzu trucks, mentioned that the firm expects export volume to be about 160,000 to 170,000 units this year, combining each CBU and CKD units.
“Unfavourable circumstances in the Middle East, where financial prospects stay murky and oil rates stay reasonably low, will make it challenging for Isuzu to develop exports. Isuzu also wants to rely on the Middle Eastern industry, particularly for Saudi Arabia exactly where the company controls 80% market place share,” he mentioned.
“There are myriad risks from other countries that could impact the country’s car export such as the new economic policies of US president Donald Trump, the international conflicts among the United States and China, and the US and Israel, and weak economic situation in Japan,” Maekawa added, echoing the sentiment of the Federation of Thai Industries (FTI) automotive club.
On the domestic front, the maker of the D-Max choose-up truck and MU-X SUV expects sales to grow by a modest two% this year, to 146,000 units. Isuzu expects Thailand’s 2017 auto sales to grow 5.5% to 810,000 units. The FTI is forecasting a 2.six% growth in total Thai output this year to two million units, such as 800,000 units for domestic consumption.
Isuzu operates two Thai plants in Samut Prakan and Chachoengsao. Combined, they have an annual production capacity of 366,000 units, and serve domestic sales as well as exports to more than 110 countries. The truck and diesel engine specialist is set to roll out a refreshed MU-X in Thailand next month.