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

[ujayujay]

No wonder, the TH market is flooded with used vehicles. Repo cars from banks and garages. Many with few kilometers on the clock and regularly serviced and with a guarantee. In the meantime, the used car prices here have adjusted to western prices.

[hotchilli]

3 hours ago, webfact said:

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

Big changes ahead in the automotive industry... and Thailand relies on this trade for GDP

[topt]

4 hours ago, webfact said:

since the pandemic hit in 2021.

I always thought it started in 2020 - or the impact of it anyhow..........

[mfd101]

4 hours 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).

If hydrogen takes off, EVs may prove a losing gambit. Both for car owners & for Thailand.

[spidermike007]

The economy still has not recovered from the Prayuth Decimation, give the Army 10 years to sabotage the economy and it's going to take a long time for it to recover. In addition you have tremendous household debt, and difficulties on so many levels, exports are down, manufacturing is down, China's competition is stiffer than ever, the real estate sector is soft, and these problems aren't going to go away anytime soon.

 

Not with this totally inept administration at the helm. 

[KhunLA]

3 minutes ago, mfd101 said:

If hydrogen takes off, EVs may prove a losing gambit. Both for car owners & for Thailand.

H2 cars been around for 20 ish yrs, no major advances, no major sales #s, no major fueling network.

 

Don't hold you breath waiting 

Edited 2 hours ago by KhunLA

[transam]

3 hours ago, Gottfrid said:

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

You don't have a car then.........?  

[JonnyF]

Too many new models are EV's and/or Chinese.

 

If you don't like them, the choice is pretty limited. I've been waiting for an all new Hilux or the new Landruiser to be released in Thailand but all I see is the boring old Fortuner/Hilux or the latest BYD or GWM tat. I refuse to buy that junk and will keep my powder dry until some decent new ICE models are released. 

[Sir Dude]

There are lots of reasons why the auto industry in Thailand is in trouble, lets do a list:

1. People are swamped in debt.

2. Banks etc. simply aren't lending on big ticket items like cars and houses like they used to through fear of NPLs.

3. Thailand is swamped with high quality repo or almost new second hand cars that are stacked up along every road for sale.

4. Electric cars are not the panacea we were led to believe, and they are a few problems...

- such as cheap Chinese quality

- expensive repairs

- battery technology is going to change soon from liquid litium to solid fuel batteries, and good luck if you get stuck with a liquid one after that

- price of electricity is ever rising plus still too little charging infrastructure

- electric vehicles are still expensive, whereas ICE ones aren't

- electric vehicles have a bigger carbon footprint to make than ICE cars do... take a while to offset that

- still not enough government incentives/subsidies to convince many to change

- replacing a EV battery might cost you a 150k baht after a few years

- buying a second EV is for the crazy folks, especially here

5. Price of ICE second hand cars plummeting.

6. Oil/gasoline/diesel power isn't going away anything soon.

7. People are putting off purchases and saving in many places as they are simply not confident about the future... it's often called "sentiment".

8. Governments, not just here, everywhere are making a tax grab on folks and business. People don't like it and hide their money instead of spending it.

There's probably more but can't be bothered to list them.... that's enough for starters.

 

 

Edited 53 minutes ago by Sir Dude

[Ralf001]

4 hours ago, Gottfrid said:

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

 

what sort of idiot logic it that ?

[Ralf001]

1 hour ago, JonnyF said:

I've been waiting for an all new Hilux or the new Landruiser to be released in Thailand 

 

 

When is Toyota  going to start selling the Landcruiser in Thailand ?