Thailand's Auto Output Drops 24.63% as Domestic Sales Falter

[webfact]

Picture courtesy: Thailand Business News

 

Thailand, a key player in Southeast Asia's automotive industry, has seen a sharp decline in car production, with a notable drop of 24.63% in January compared to the same period last year. The Federation of Thai Industries (FTI) revealed today that production numbers plummeted to 107,103 units in January, primarily due to weakening domestic sales and falling exports.

 

As the region's largest automotive production hub, Thailand hosts factories for prominent global manufacturers such as Toyota and Honda. The recent figures are alarming, highlighting an 18-month streak of consecutive production decreases. December saw a 17.37% year-on-year drop, making January's figures particularly concerning.

 

Surapong Paisitpattanapong, the spokesperson for the FTI's automotive division, expressed his surprise at the sharp decline, acknowledging the unexpected severity of the statistics. "The production numbers are really low," he remarked during a news conference.

 

Domestic sales in Thailand fell by 12.26% in January compared to the previous year, with only 48,092 units sold. This dip followed a December decrease of 20.94%. The federation attributes the decline to tighter auto loan conditions, exacerbated by high household debt levels in the country.

The export sector also faced challenges, with a significant 28.13% year-on-year reduction, equating to 62,321 units. Notably, this marks the lowest export figure in 33 months, driven by heightened competition from Chinese automotive brands. In contrast, December saw a 15.46% drop, highlighting the escalating issues this year.

 

Export destinations like Australia, the Philippines, and Japan remain crucial markets for Thailand's automotive exports. With such a significant downturn, the FTI is paying close attention to upcoming governmental measures aimed at alleviating issues related to auto loans.

 

Additionally, there is a focus on potential impacts from changes in the United States’ automobile tariff policies. Such changes could shape the industry landscape, as US President Donald Trump has indicated potential levies on automotive imports, with decisions expected by early April.

 

The current situation raises concerns within Thailand's automotive industry, urging stakeholders to adapt and seek solutions to mitigate these downward trends.

 

With ongoing discussions and potential policy changes on the horizon, the industry's future remains closely monitored by both domestic and international observers. The overall impact on the Thai economy is significant, underscoring the need for strategic responses to these evolving challenges, reported Reuters via Thai Newsroom.

 

-- 2025-02-25

 

 

[Geoffggi]

42 minutes ago, webfact said:

The current situation raises concerns within Thailand's automotive industry, urging stakeholders to adapt and seek solutions to mitigate these downward trends.

 

It is not just Thailand; the whole world is battling this problem. the main factors are people cannot afford the cost of electric vehicles coupled with this the infrastructure is not available in many countries to support electric vehicles & the many unknowns associated with this line of progress throughout the auto industry. Many people are reluctant to purchase battery driven electric vehicles (& quite rightly so in my opinion) there are other & possibly better alternatives out there once they iron out a few problems.

[quake]

Oh well.

What a surprise. 

 

[ExpatOilWorker]

Even those earth saving fantastic and heavily subsidized BEVs are taking a beating.

 

[Tropicalevo]

There is no way that I would consider buying an electric vehicle.

Electricity is just under 10 baht per unit on the development where I live.

[BritManToo]

2 hours ago, Geoffggi said:

not just Thailand; the whole world is battling this problem. the main factors are people cannot afford the cost of electric vehicles c

Neta v, 450kbht new, 300kbht 1 year old, hardly expensive!

[KhunLA]

53 minutes ago, Tropicalevo said:

There is no way that I would consider buying an electric vehicle.

Electricity is just under 10 baht per unit on the development where I live.

10 baht, that's more than the charging stations charge 

 

Still cheaper than petrol though.

[billd766]

55 minutes ago, BritManToo said:

Neta v, 450kbht new, 300kbht 1 year old, hardly expensive!

And if the banks and finance companies will not lend the money if they believe that you cannot repay it? If you don't have the funds without borrowing it, then it IS expensive.

 

Given the current debt in the private sector, buying a new car is out of the question for many Thai people, ICE or EV.

 

Try thinking outside the box and your comfort zone.

[Hardcastle P]

28 minutes ago, billd766 said:

And if the banks and finance companies will not lend the money if they believe that you cannot repay it? If you don't have the funds without borrowing it, then it IS expensive.

 

Given the current debt in the private sector, buying a new car is out of the question for many Thai people, ICE or EV.

 

Try thinking outside the box and your comfort zone.

China are already ahead of the game. They have invested heavily in both battery and EV production. Not only that they appear to have the necessary raw materials for battery production in their pockets.  They "thought out of the box " some years ago. You need to have a good close look at what they are offering

 

[edwinchester]

2 hours ago, Tropicalevo said:

There is no way that I would consider buying an electric vehicle.

Electricity is just under 10 baht per unit on the development where I live.

Installed solar panels last year for 90k bht. Save between 10k and 11k bht every month in fuel costs now we run an EV so all of our mileage is free. Next car will also be an EV as in 20 months of ownership have never missed my diesel vehicle.

[FlorC]

My car is over 17 years and starting to get problems but at these exchange rates AND tax for sending money here 

I won't be buying a new one.

[bkk6060]

They should get out and hustle more and sell more cars to people who make 12,000 b a month with a 5,000 b car payment. 

[hotchilli]

8 hours ago, webfact said:

The Federation of Thai Industries (FTI) revealed today that production numbers plummeted to 107,103 units in January, primarily due to weakening domestic sales and falling exports.

No money, no buy.... simple economics

[Mark Hopkins]

If you're considering a Chinese car purchase (as I am) then probably best to seal a deal sooner rather than later before Thailand slaps tax on imports!