June 14, 2008
BANGKOK - Auto sales rose 6.9 percent year-on-year in May, as drivers snapped up more fuel-efficient cars and left truck sales sagging, the industry said Friday.
In May, vehicle sales were at 54,910 units. Sales for the first five months of the year grew 13.4 percent over the same period last year, reaching 271,367 units.
"Demand for fuel-saving cars, including alternative energy cars, remained a positive factor in the growth of auto sales in May," Toyota Motor said in a statement.
"However, consumers' purchasing power has been hurt by rising oil prices, which hit new records in May and pushed up diesel prices especially high, and by inflation which hit a 10-year high in May. This caused a decrease in truck sales," it said.
Weaker growth is expected for June as consumers tighten their belts due to rising fuel costs, higher inflation and concerns over political instability in the country.
Oil prices kept rising this month as New York crude struck a historic high point of 139.12 dollars one week ago, when it surged a record-breaking 10.75 dollars in one day's trade.
Sales by Japanese auto giants Toyota, Isuzu and Honda dominate the market, with their combined sales accounting for about 79.5 percent of the market in May, according to AFP.
Toyota predicts car sales in Thailand will grow 11 percent to 700,000 units this year, following two years of decline.
