Investment May Stall In The Short Term
BMI View : As we turn more downbeat on the Thai auto sector in the short term due to weakening consumer demand, we see the risk of some suppliers and carmakers postponing their investments in the sector. However, in the medium- to long term, the sector will continue to attract investment due to the country's status as the region's premier automotive hub.
With Thailand entering into a technical recession in the Q213 and emerging markets witnessing a sharp sell-off in recent weeks, industry players such as original equipment manufacturers are understandably putting out a more cautious tone on future earnings from emerging markets.
Furthermore, we have recently turned more downbeat on the Thai auto market as we see consumer demand weakening in the coming months and vehicle exports also struggling to maintain their strong H113 growth rates ( see 'Production Faces Challenges In Coming Months', August 27). Against such a backdrop, we see the possibility of some automakers and suppliers having a re-think about investing in the Thai auto market.
|Falling In Line With Our Cautious Outlook|
|Thailand - TRU Share Price (THB)|