DOMESTIC SALES LOOK MORE PROMISING

       Next year's outlook for automobile exports remains murky due to the high risk of sluggish economies in many countries and the rising price of oil, while domestic sales are expected to expand about 5 per cent thanks to the government's economic stimulus package and rising farm income.
       "Our exports have dropped some 40 per cent year on year since the first quarter and there are still no signs of them getting better. We're afraid that the situation can get worse in case those countries have no more economic stimulus packages and their economies are kept in hardship," Suparat Sirisuwanangkura, president of the Thai Automotive Industry, said yesterday.
       Auto exports in 2010 will either rise or fall by 5 per cent from this year's target of 540,000 units. However, lower exports tend to have more chance of taking place.
       Another important foctor is the continual hike in oil prices, which have a high probability to spiral up from US$75-$80 per barrel at present to $100 next year, he said.
       Nonetheless, auto-makers have opportunities to expand their customer bases in the Middle East and Asean where the markets have been recovering faster than other parts of the world."
       In Thailand, sales of new passenger cars are on an upward tick since sales fell only 8 per cent in the first three quarters, while sales of pickup trucks shrank 29 per cent due to lowincome in the agricultural sector.
       "I believe pickup sales will become higher following the government's policy of guaranteeing crop prices. On the side of carmakers, we would like the government to give a clear direction for its energy policy so we can plan our business properly," he said.
       Domestic atuo sales in the first nine months fell 20 per cent from the same period last year to 360,000 units, he said. In the same period, exports declined 39.3 per cent to 363,000 units.
       Auto-makers have cut their production target from 1.08 million units to 1 million units this year, with 520,000 units for the domestic and the rest for export.
       Some 70 per cent of terminated and laid-off workers have been called back to auto and auto-parts plants since the global economic crisis was unwound, he added.

       "Another important factor is the continual hike in oil pirces, which have a high probability to spiral up from US$75-$80 per barrel at present to $100 next year."