Thailand´s automotive sectors is characterised by high entry barriers as the players in the market are large multinationals with strong financials and good know-how.
- Thailand´s automotive sector is facing only a slight increase in demand in 2015 due to the more subdued domestic household consumption outlook and expected lower growth in some major Asian economies. That said, profit margins are expected to remain stable in the sector.
- Thailand´s automotive sectors is characterised by high entry barriers as the players in the market are large multinationals with strong financials and good know-how.
- Depending on the level in the supply chain, payment duration in the automotive sector ranges between 30 days and 90 days. Payment behaviour is good with a low number of non-payment notificiations, and this is expected to remain unchanged in the coming months. The insolvency level in this industry is expected to remain low.
- Due to the robust performance our underwriting stance is generally open. The currently low commodity prices (e.g. steel and metals) benefit the automotive sector. But this also means that steel and metals-related suppliers to the industry currently face more troubles due to high competition and lower sales prices.
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Market Monitor October 2015
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