Thailand's auto production in 2014 decreases following sluggish sales

[webfact]

Thailand's auto production in 2014 decreases following sluggish sales

BANGKOK, 21 January 2015 (NNT) - The Federation of Thai Industries (FTI) has reported that Thailand produced 1.88 million cars in 2014, lower than a target of 2.1 million cars.

Vice President and Spokesman of the FTI’s auto industry group Suraphong Phaisitphatthanaphong said the number of cars manufactured in Thailand last year stood at 1.88 million units, decreasing from the same period of 2013 by 23.49% and the target of 2.1 million units.

A 33.7% drop in car sales in the country was the main cause of the lower production in 2014. Other factors affecting Thailand’s car production last year included an economic slowdown, delayed budget disbursement of the government and produce price drop, said the vice president.

Thailand produced more than 753,800 cars in 2014, decreasing by 43.26% compared to 2013. Its car production for export was 1.12 million units or 59.69% of the total production, increasing by 0.08% compared to 2013.


-- NNT 2015-01-21

[Costas2008]

This also has to do with Thais having borrowed more money than what they can afford to repay.

Not only stopped buying cars but they find it very difficult to repay the existing loans.

And here is where the loan sharks, thrive in this country.

In my opinion, not only we will not see the sale of cars going up but instead the repossessions going sky high.

[trainman34014]

Any bets on even lower production in 2015 ?

[Snig27]

Any bets on even lower production in 2015 ?

Economy is in free fall so it's a fair bet. It's going to be an unhappy year economically for many in Thailand sadly.

[clockman]

You reap what you sow! Many things are coming home.

[HeijoshinCool]

Suraphong Phaisitphatthanaphong

By the time you got done teaching customers how to say your name, there would be no sales, and the year would be over.

[DLock]

...surprised there was not a final paragraph that said...

"Car production and domestic sales are set to increase in 2015 due to Government initiatives, improving Thai economy and because the General believes it will."

Data points General...I hope your taking note...

[Skywalker69]

PTP car sceme now shows it´s ugly face.

[Thunder26]

I think the car market hit its ceiling in Thailand, especially after 2013 government 100.000 Baht refund project. Who needed a car bought it then. I don't understand why the car companies expect that the car owners will buy (change for) a new car every 2 or 3 years? My prediction the car sales will go even more down for 2015 and 2016 because of the above and because of the world economic slowdown which will affect Thailand as well.

[NeverSure]

Thais don't understand debt. (Not that a lot of Westerners do.)

I have two friends in Isaan who bought new homes on the new home scheme for government employees at about the same time they bought new pickups on the new car scheme. They are both school teachers and they are in world of hurts.

This doesn't include the smartphones etc. They can't afford these things. I don't know what will happen.

One in particular I really like and It's hard for me not to bail her out. Every time I think about it I have to hit myself on the head with a hammer. She needs to learn and it's not my doing.

[djjamie]

Any bets on even lower production in 2015 ?

Economy is in free fall so it's a fair bet. It's going to be an unhappy year economically for many in Thailand sadly.

Free fall until May 22nd, 2014. It has been in recovery every since. Show me one economic indicator that proves me wrong.

And no I am not saying the Junta are a great government, I am saying that they are better than terrorism when looking at a recovering economy.

You realize any argument you present hinges on terrorism being a positive economic growth indicator right?

Maybe if we revert to the daily terrorist attacks the industry will recover!!!

PTP logic right there.

[trainman34014]

I have a friend who rented her house out for 10,000 a month and immediately went off and got finance for a new truck and Scooter which gobbled up the 10,000. After six months the tenants moved out (as was the plan) and she can't get anyone to rent the house now as it's way out in the sticks. Bank now wants to take the truck away and Motorbike dealer threatening her life if she doesn't pay.

Problem is the have no logical thinking and only see ahead as far as tomorrow.

[Noi657]

But with all this doom and gloom, no doubt TAT will be along tomorrow to say that they expect 35 billion people to enter thailand this year! Yay!

[Squeegee]

They can't live in a childlike fantasy forever. Unfortunately they'll need to suffer before they actually grow up.

So let them reap what they've sown on every level, it's the best thing for them.

[spidermike007]

Maybe the car dealerships will start getting more competitive on their pricing? I inquired about a new Prius recently, and when I asked what year it was, they said 2013. Well, I think so. Maybe 2012. Do you have the current year available? No. Can I order one? I do not think so. How much discount am I looking at for a two year old, new car? Not much. When will the new models be in? We do not know.

Amazing. How can you even respond to an interaction like that?

[Doc46]

It is their own fault, the cars built in Thailand are built to a lower standard than for example Australia and are more expensive than in Australia The cars built in Thailand are build with cheaper material and cheaper labour,,,,,So WHY are the same cars built in Thailand more expensive,,,,,,,,,,,,JUST PURE GREED,,,,,,,,,,, SAY NO MORE,,,,,,,