Thailand's Car Production Set for Growth Amid Challenges

BANGKOK (NNT) - Thailand's car production is projected to see a modest increase of 3.17%, reaching 1.9 million units this year, despite various economic challenges, as per the Federation of Thai Industries (FTI). In contrast, the total car production in the previous year was slightly below the 1.85 million target, coming in at 1.84 million units due to weak domestic sales and the impact of the global economic slowdown on exports.

For 2024, FTI's Automotive Industry Club Surapong Paisitpatanapong said the FTI anticipates car production for export to be around 1.15 million units, while production aimed at domestic sales is expected to hit 750,000 units. He expressed optimism for a healthier economy in 2024, contingent on the government’s stimulus measures boosting purchasing power.

However, a significant decline was noted in December's car production, which fell by 15.7% year-on-year to 133,621 units, influenced by banks' stringent car loan criteria amidst high household debt levels in Thailand. The influx of electric vehicle (EV) imports from China also contributed to this decrease.

The government is actively promoting the EV industry through various incentive packages, such as subsidies, reduced import duties, and excise tax cuts for car manufacturers. Despite a 17.4% drop in domestic car sales in December, Thailand's car exports from January to December 2023 grew by 11.7% year-on-year to 1.11 million units, with the export value increasing by 15.2% to approximately 719 billion baht.

By Krajangwit Johjit

Full story: NNT 2024-01-30

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