Thailand’s car industry hits the brakes: Production plunges 20%

[snoop1130]

 

With a significant decrease in production, Thailand’s car output experienced a 19.28% year-on-year slump in February, with the total units produced amounting to only 133,690, as reported by the Federation of Thai Industries (FTI).

 

The numbers, attributed predominantly to the reduced production of pickup trucks and increased imports of electric vehicles (EVs), starkly contrast the 12.46% dip recorded in January.

 

Marked as Southeast Asia’s leading hub for automobile production, Thailand serves as an export base for major global car manufacturers, including Toyota and Honda. Pickup trucks form a crucial part of their manufacturing portfolio.

 

Despite the gloomy figures, the FTI maintains optimism, forecasting 1.9 million vehicles to roll off the production line this year. This projection comes on the back of 1.84 million vehicles produced in 2023, which represented a 2.2% year-on-year decline.

 

As for car sales in February, the FTI’s automotive industry division reported a total of 52,843 units, reported Bangkok Post.

 

In related EV news, major automobile companies are forecasting a rapid escalation in the Thai electric vehicle (EV) market, propelled by increased investment from Chinese EV manufacturers. This is anticipated to ignite a price war as manufacturers strive to lure consumers with competitive pricing.

 

This viewpoint was shared by Narong Sritalayon, the managing director of Chinese automaker Great Wall Motor (GWM), in a statement made ahead of the Bangkok International Motor Show.

 

GWM has already commissioned its EV manufacturing plant in Rayong and is prepared to challenge other contenders planning to establish production facilities in Thailand. The company foresees a surge in competition within the domestic EV market as EV availability, predominantly from Chinese manufacturers, continues to expand.

 

Echoing this sentiment is Thai-Chinese joint venture SAIC Motor-CP, the producer of MG cars. The venture foresees the potential for a price war among manufacturers due to the prevailing market circumstances, said Pongsak Lertruedeewattanavong, Vice-president of MG Sales Thailand.

 

By Alex Morgan

 

Source: The Thaiger 2024-03-26

 

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[stoner]

break failure or lap noi maybe the cause ? 

[Tropicalevo]

Oh my gosh.

Production has dropped now that EV's are being pushed by the PM, and his Chinese friends are getting tax breaks and other support.

"As ye sow, so shall ye reap."

[hotchilli]

13 hours ago, snoop1130 said:

With a significant decrease in production, Thailand’s car output experienced a 19.28% year-on-year slump in February, with the total units produced amounting to only 133,690, as reported by the Federation of Thai Industries (FTI).

That's a big hit...

Japanese models even Hybrids are being shunned due to the inexpensive Chinese EV's....

I'm sure Srettha didn't think this one through properly when he pushed for higher EV sales.

I wonder what the likes of Toyota, Mazda, Isuzu and others are thinking?

[al valio]

No surprise if the majority of local production is Japanese companies with their old fashioned cars. Should have started earlier with EV production, not wait till the Chinese are here with their shiny modern cars.

 

But anyhow the Chinese are already investing in EV production in Thailand, so the numbers will soon look better. If the Japanese don't get going, well, their loss...

[Henryford]

1.9 million vehicles this year compared to 1.84 million in 2023. That's a 2.2% decline?

[Ralf001]

I work for a tier 1 company that supplies all the big automakers and all ramped up orders 4th quarter last year and have not eased.

 

What slump ?

[josephbloggs]

51 minutes ago, hotchilli said:

That's a big hit...

Japanese models even Hybrids are being shunned due to the inexpensive Chinese EV's....

I'm sure Srettha didn't think this one through properly when he pushed for higher EV sales.

I wonder what the likes of Toyota, Mazda, Isuzu and others are thinking?

 

Who cares. They are making old fashioned vehicles that are way inferior to the Chinese ones and nobody wants them anymore  Consumer wins.  

Would you prefer the consumer be forced to buy old fashioned legacy car makers' rubbish instead?

Again, who cares?

[mrmicbkktxl]

49 minutes ago, al valio said:

No surprise if the majority of local production is Japanese companies with their old fashioned cars. Should have started earlier with EV production, not wait till the Chinese are here with their shiny modern cars.

 

But anyhow the Chinese are already investing in EV production in Thailand, so the numbers will soon look better. If the Japanese don't get going, well, their loss...

Japanese companies specialy toyota are not interested in the EV crap,EV is a dead horse

[jacko45k]

2 minutes ago, mrmicbkktxl said:

Japanese companies specialy toyota are not interested in the EV crap,EV is a dead horse

Disposable vehicles........

[Celsius]

42 minutes ago, Ralf001 said:

I work for a tier 1 company that supplies all the big automakers and all ramped up orders 4th quarter last year and have not eased.

 

What slump ?

 

supplies with what?

[al valio]

47 minutes ago, Ralf001 said:

I work for a tier 1 company that supplies all the big automakers and all ramped up orders 4th quarter last year and have not eased.

 

What slump ?

The article compares year-on-year numbers, so they look at only 1 month: February this year vs February 2023.

[al valio]

1 hour ago, Henryford said:

1.9 million vehicles this year compared to 1.84 million in 2023. That's a 2.2% decline?

The 2.2% decline was for 2023, so I guess 2023 compared to 2022.

 

Projection for 2024 is higher and predicts an increase in production, yes.

[Ralf001]

27 minutes ago, Celsius said:

 

supplies with what?

 

Errr, parts that are used to build the vehicles.

[Ralf001]

20 minutes ago, al valio said:

The article compares year-on-year numbers, so they look at only 1 month: February this year vs February 2023.

Ahh ok yeah.... start of 22 sales were through the roof.

[Celsius]

3 minutes ago, Ralf001 said:

 

Errr, parts that are used to build the vehicles.

 

yes, what parts?

[sandyf]

32 minutes ago, mrmicbkktxl said:

Japanese companies specialy toyota are not interested in the EV crap,EV is a dead horse

Garbage, Toyotal was one the first into the EV business, the initials can be distorted to suit any agenda.

Couple of years ago I went on one of the new EVs up the river in Bangkok, you will be telling us next that they are dead in the water.

[mrmicbkktxl]

44 minutes ago, sandyf said:

Garbage, Toyotal was one the first into the EV business, the initials can be distorted to suit any agenda.

Couple of years ago I went on one of the new EVs up the river in Bangkok, you will be telling us next that they are dead in the water.

https://www.forbes.com/sites/peterlyon/2024/03/03/bucking-industry-trend-toyota-chairman-downplays-ev-growth-predictions/

[Ben Zioner]

2 hours ago, hotchilli said:

That's a big hit...

Japanese models even Hybrids are being shunned due to the inexpensive Chinese EV's....

I'm sure Srettha didn't think this one through properly when he pushed for higher EV sales.

I wonder what the likes of Toyota, Mazda, Isuzu and others are thinking?

Honda are dealing with their e:Ny1 as if it was a giant hot potato. They produce it in Thailand and can't find a price tag below 1.5M. They are looking at all sorts of finance schemes to dump it on the market.

 

Affordable EVs might end up as the greatest Chinese contribution to mankind.

[vinny41]

2 hours ago, hotchilli said:

That's a big hit...

Japanese models even Hybrids are being shunned due to the inexpensive Chinese EV's....

I'm sure Srettha didn't think this one through properly when he pushed for higher EV sales.

I wonder what the likes of Toyota, Mazda, Isuzu and others are thinking?

First, let me provide a summary of the third quarter of the fiscal year ending March 2024. Cumulative operating income for the nine months was 4.24 trillion yen, an increase of 2.14 trillion yen from the same period of the previous fiscal year. The full-year forecast is 4.90 trillion yen

https://global.toyota/pages/global_toyota/ir/financial-results/2024_3q_presentation_2_en.pdf

 

Someone is buying Toyota's  big time hence increase sales

[Hardcastle P]

2 hours ago, mrmicbkktxl said:

Japanese companies specialy toyota are not interested in the EV crap,EV is a dead horse

For your information Honda and Toyota have joined forces in EV  R and D, I think it's you that is flights dead horse.

[vinny41]

18 minutes ago, Ben Zioner said:

Honda are dealing with their e:Ny1 as if it was a giant hot potato. They produce it in Thailand and can't find a price tag below 1.5M. They are looking at all sorts of finance schemes to dump it on the market.

 

Affordable EVs might end up as the greatest Chinese contribution to mankind.

At the moment the average interest rate on new cars is 10% per year as dealers tend to advise customers to take out a 7 or 8 year finance agreement lower monthly payments for customer higher commission fees from Finance lenders to dealers

At the moment 50% of all car loan applications are rejected

F.T.I. reveals 50% loan rejection for car purchases

https://www.bangkokbiznews.com/business/economic/1114429

Government has stated average household debt very  high at 90.9% of GDP are are looking at measures to reduce average household debt to below 80% of GDP

300,000 additional  cars were repossessed in 2023 over and above the normal repossessed rate of 150,000-180,000 and its forecast that between 250,000-300,000 cars over and above the normal repossessed rate will be repossessed in 2024

https://theactive.net/news/economy-20230229/

might be a number of years away before you see Affordable cars on the road

[vinny41]

5 minutes ago, Hardcastle P said:

For your information Honda and Toyota have joined forces in EV  R and D, I think it's you that is flights dead horse.

Its Honda and Nissan that have joined forces in EV not Honda and Toyota

https://www.abc.net.au/news/2024-03-19/fierce-rivals-honda-and-nissan-join-forces-china-byd/103603464

[hotchilli]

5 hours ago, josephbloggs said:

 

Who cares. They are making old fashioned vehicles that are way inferior to the Chinese ones and nobody wants them anymore  Consumer wins.  

Would you prefer the consumer be forced to buy old fashioned legacy car makers' rubbish instead?

Again, who cares?

I was more concerned if the production levels in Thailand fall to a certain limit they will pull-out of Thailand for production...

leaving thousands unemployed.

[transam]

5 hours ago, Ralf001 said:

I work for a tier 1 company that supplies all the big automakers and all ramped up orders 4th quarter last year and have not eased.

 

What slump ?

You are retired.............

[Ralf001]

48 minutes ago, transam said:

You are retired.............

 

Where in my post did I say i was retired ?

[PETERTHEEATER]

7 hours ago, hotchilli said:

That's a big hit...

Japanese models even Hybrids are being shunned due to the inexpensive Chinese EV's....

I'm sure Srettha didn't think this one through properly when he pushed for higher EV sales.

I wonder what the likes of Toyota, Mazda, Isuzu and others are thinking?

Toyota has announced they will put on sale in Thailand an EV version of the Hilux by end of 2025. They plan to put six pre-production models on trial in Pattaya by end of 2024. (Shudder)

[transam]

1 hour ago, Ralf001 said:

 

Where in my post did I say i was retired ?

I thought you were an ol' duffer........😁

[sandyf]

6 hours ago, mrmicbkktxl said:

https://www.forbes.com/sites/peterlyon/2024/03/03/bucking-industry-trend-toyota-chairman-downplays-ev-growth-predictions/

You will have to show me where this statement appears in the article.

"toyota are not interested in the EV crap,EV is a dead horse"

 

Seems to me you have trouble differentiating between hybrid electric vehicle and total electric vehicle, even electric vessels appear to be outside your comprehension.

[edwinchester]

9 hours ago, Henryford said:

1.9 million vehicles this year compared to 1.84 million in 2023. That's a 2.2% decline?

Thai declines are different.