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Thailand's Auto Production at Lowest Level Since 2021 Pandemic


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Posted

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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.

 

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-- 2024-11-26

 

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  • Like 2
Posted

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

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Posted

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.

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Posted
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

  • Like 1
Posted
4 hours ago, webfact said:

since the pandemic hit in 2021.

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

Posted

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. 

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Posted
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 :cheesy:

  • Agree 1
Posted
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.........?  :unsure:

Posted
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 ?

  • Haha 1
Posted
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 ?

Posted
9 hours ago, transam said:

You don't have a car then.........?  :unsure:

You lost me there. Why wouldn´t I have?

Posted
9 hours ago, Gottfrid said:

You lost me there. Why wouldn´t I have?

Oh, you do, but you will never replace it.........😉

Posted

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

 

actually I think it's the opposite.

 

1.5 years ago I bought NETA which I paid less than a similar ICE vechicle.

 

Cheaper regular service and 4x saving considering electricity/petrol price and fuel consumption 15km/l

 

buying now a 2nd hand car is even better for buyer because pay only half price for a 1y old car!

  • Confused 1
Posted
On 11/26/2024 at 7:34 AM, mfd101 said:

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

The process of producing the hydrogen gas, waist a lot of energy, at best you get 40 to 45 % back of what you put in.

If used with wind mills when there is strong wind and price of electric power is negative, it could be useful.

But instead they spend billions to stabilize the problems with fluctuating wind-power.

  • 4 weeks later...
Posted
On 11/26/2024 at 2:57 PM, Ralf001 said:

 

 

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

 

I think the LandCruiser Mini will come first, I'm guessing in 2025.

 

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Posted
2 hours ago, JonnyF said:

 

I think the LandCruiser Mini will come first, I'm guessing in 2025.

 

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Yeah they are cool, Same chassis and drivetrain as the Hilux Champ. 

 

I'd be keen if they are priced well.

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