Thai car market set for slow down

BANGKOK: The recent closure of 42 ailing finance firms by the Thai government is hurting the local car market.

Annual sales for the year are now expected to be lucky to reach 400,000 -- 60,000 less than the figure predicted prior to Thailand's financial crisis.

This year, the local car market will face difficulties due to the shutdown of the 42 finance firms and 16 others suspended earlier, according to a report from the automotive club under the Thai Industries Federation.

Because of the sluggishness on the domestic market, some companies, like Mitsubishi, Toyota and Honda, have turned to the export market.

The export volume for this year is expected to exceed 45,000 cars, according to the report.