Thai car production takes a hit with 23.08% decline in March
Thailand’s car production experienced a significant downturn of 23.08% in March compared to the same period last year, producing only 138,331 units, according to data from the Federation of Thai Industries (FTI). This follows a year-on-year decline of 19.28% in February.
Over the first quarter of the year, car production has decreased by 18.45% year-on-year, amounting to 414,123 units.
According to the FTI, these falling figures are largely due to a decrease in pick-up truck production, spurred by softer demand as financial institutions tighten auto loans. In March, domestic car sales decreased by 29.83% year-on-year, following a decrease of 26.15% from the previous month.
Thailand, Southeast Asia’s largest auto production centre, serves as an export base for several of the world’s leading car manufacturers, including Toyota and Honda. Due to popular consumer demand, pick-up trucks are a key production vehicle in the region.
However, Chinese electric vehicle brands such as BYD and Great Wall Motor have started to penetrate the Thai auto sector, buoyed by governmental tax incentives and subsidies, as reported by Bangkok Post.
For 2024, the FTI predicts a total car production of 1.9 million vehicles, an increase from the 1.84 million vehicles produced last year.
The Excise Department announced yesterday, April 24, that it anticipates Thailand will manufacture between 350,000 and 525,000 electric vehicle units by 2027, reported Bangkok Post.
In similar news, The International Energy Agency (IEA) predicts robust growth in the sales of electric cars in 2024, despite economic challenges in certain markets. Key driving factors for this surge include affordability and the development of charging infrastructure.
The IEA estimates that electric car sales will reach 17 million this year, a boost from 14 million the previous year.
This indicates that more than one-fifth of the global car sales are projected to be electric, thereby challenging the oil demand for road transport. China is expected to be the biggest consumer, with a predicted sale of 10 million electric vehicles.
