Thailand's Auto Production at Lowest Level Since 2021 Pandemic

[webfact]

Picture courtesy: Freepik

 

Thailand's automotive production is in a steep decline, with projections for 2024 marking the lowest output since the pandemic hit in 2021. The Federation of Thai Industries (FTI) anticipates that vehicle production will drop to 1.5 million units this year.

 

Surapong Paisitpatnapong, a spokesperson for the FTI's automotive industry group, conveyed this bleak forecast today, 25th November. This is the second time this year they have revised the figures downward, previously adjusting them from 1.9 million to 1.7 million units in July.

 

The Thai automotive market is grappling with an array of challenges. Banks have tightened their lending criteria for car loans due to rising bad debt levels and household debt, which has soared past $500 billion. This tightening significantly impacts car sales, particularly for pickup trucks, a popular choice in Thailand.

 

Prime Minister Paetongtarn Shinawatra's administration is actively working on strategies to alleviate this economic burden.

Export targets have been similarly downgraded, with expectations falling from 1.15 million to 1.05 million vehicles. Domestic production targets are now set at 450,000 units, down from the original 550,000.

 

These reductions highlight the dual impact of domestic market constraints and international turmoil, notably conflicts in the Middle East affecting Thai automotive exports.

 

Recent figures reflect these challenges. In October, domestic auto sales plummeted by 36% year-over-year, with only 37,691 units sold. Exports also saw a stark decline, dropping 20.2% to 84,334 units compared to October 2023, as reported by the Bangkok Post.

 

In a strategic move, Thailand plans to revise its automotive excise tax framework to support the global shift towards electric vehicles (EVs).

 

Deputy Finance Minister Paopoom Rojanasakul announced that this adjustment aims to align Thailand's policies with international automotive trends, reflecting the growing competition between battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

 

These developments indicate a challenging period for Thailand's automotive industry, underscoring the need for effective policy measures and industry adaptation to global changes, reported Bangkok Post.

 

-- 2024-11-26

 

 

[Gottfrid]

That´s good news! It will keep the accidents down. They shouldn´t have too many cars on the roads in Thailand. 😉 

[Geoffggi]

1 hour ago, webfact said:

In a strategic move, Thailand plans to revise its automotive excise tax framework to support the global shift towards electric vehicles (EVs).

Bad move, the sales of EVs in general the world over are not doing as expected & in my opinion are not the way forward, Thailand is being led down the garden path by China - No surprise there .............LOL