With a slowing automotive industry, Thai Steel Cable Plc (TLC) is downbeat about its sales this year.
TSC, the manufacturing unit of Summit Auto Group, projects revenue for fiscal 2016 to drop to 2.71 billion baht, down 4.16%.
The company posted 1.33 billion baht in revenue for the first quarter, down 8.5%. Net profit, however, climbed to 68.3 million baht, up 16.2%.
Sarit Patanatmarueng, managing director at TSC, said the company has done its best to manage expenses and maintain its 5% net profit margin. Mr. Sarit noted that the adoption of an automated system at its plant in Chon Buri has also helped reduce expenses.
Mr. Sarit expects vehicle output to remain flat this year at 1.8-1.9 million units. The company’s 1,300 employees will be more than sufficient to maintain its 80% production capacity. The circumstances, he said, are not like 2012 and 2013 when the company was producing 2 million vehicles and employed 1,500 people.
The FTI (Federation of Thai Industries) has maintained its 750,000-780,000-unit forecast for domestic car sales, although pickup truck sales have shown signs of a recovery.
Sales are expected to decline between 2.5% and 6.2% compared to last year.
Domestic vehicle shipments in April were down 2% to 80,491, although value climbed to 43.1 billion baht, up 10.2%. Car exports in Thailand for the first four months of the year dropped to 388,251, down 5.39%. Value, however, rose to 207 billion baht, up 11.1%.
Despite these disappointing figures, Thailand’s automotive industry still has the potential to achieve an output of 3 million vehicles over the next three years, according to Mr. Sarit.