The Federation of Thai Industries' Automotive Industry Club is considering a second adjustment to its auto sales forecast for this year.
This follows the volume of auto exports hitting a 22-year high last month, while domestic sales are still going well.
Spokesman Surapong Paisitpat-napong said yesterday the club would wait for auto-sales results at the end of next month before deciding whether to adjust the target upward for a second time.
In the middle of this year, the Automotive Industry Club lifted its 2010 auto sales target to 1.5 million units, from the previous 1.4 million. The new figure includes about 890,000 units that the club expects Thai auto-makers to sell overseas.
Surapong said Thailand exported 87,605 vehicles in July - an increase of 139.65 per cent over July last year. The figure was the highest in 22 years. Orders grew in every export market, particularly those in Asia.
He said the increased auto exports had been facilitated by improved legislation affecting the Customs Department. Thai auto exporters could also benefit from tax waivers or declined tax among signatory countries to the Asean Trade in Goods Agreement (ATIGA), which has replaced the Common Effective Preferential Tariff (CEPT).
The value of auto exports last month was Bt39.835 billion, an increase of 129.41 per cent over July last year.
The figure brought the volume of auto exports in the first seven months of this year to 505,783 units, an increase of 115.57 per cent over the first seven months of 2009. The value of auto exports in that time was Bt234.968 billion, a year-on-year increase of 86.95 per cent.
When the value of exported auto parts and spare parts are added to the value of exported vehicles, the total export value in the first seven months of 2010 was Bt333.874 billion, a year-on-year rise of 76.25 per cent, Surapong said.
"We have to export about 385,000 more vehicles this year to achieve our export target. If the EU can stop its financial crisis and domestic car sales continue to increase, we will possibly adjust the target again," he said.
Domestic auto sales last month reached 65,672 units, increasing by 52.2 per cent year on year but declining by 6.92 per cent from the previous month. Domestic sales in the first seven months of 2010 reached 422,364 units, rising by 53.8 per cent year on year. The strong baht will be a major concern for auto manufacturers for the rest of this year. However, the club believes that the industry can maintain its competitiveness when compared with rivals, Surapong said.
FTI chairman Payungsak Chart-sutipol said the industrial confidence index last month stood at 108.6 points, increasing from 103.3 in June.
The index reflects improving confidence among industrialists and investors to the Thai economy as orders, production output and operating results increase, he said. As well, political tension is easing as the government proceeds with its reconciliation plan.
The FTI expects the industrial confidence index to rise to 117.6 points over the next three months because of economic improvements including advance orders and high production output and operating results. It forecast in June that the index would rise to only 105.7 points this year, a level that has already been overtaken.