Thailand’s car industry hits the brakes: Production plunges 20%

With a significant decrease in production, Thailand’s car output experienced a 19.28% year-on-year slump in February, with the total units produced amounting to only 133,690, as reported by the Federation of Thai Industries (FTI).

The numbers, attributed predominantly to the reduced production of pickup trucks and increased imports of electric vehicles (EVs), starkly contrast the 12.46% dip recorded in January.

Marked as Southeast Asia’s leading hub for automobile production, Thailand serves as an export base for major global car manufacturers, including Toyota and Honda. Pickup trucks form a crucial part of their manufacturing portfolio.

Despite the gloomy figures, the FTI maintains optimism, forecasting 1.9 million vehicles to roll off the production line this year. This projection comes on the back of 1.84 million vehicles produced in 2023, which represented a 2.2% year-on-year decline.

As for car sales in February, the FTI’s automotive industry division reported a total of 52,843 units, reported Bangkok Post.

In related EV news, major automobile companies are forecasting a rapid escalation in the Thai electric vehicle (EV) market, propelled by increased investment from Chinese EV manufacturers. This is anticipated to ignite a price war as manufacturers strive to lure consumers with competitive pricing.

This viewpoint was shared by Narong Sritalayon, the managing director of Chinese automaker Great Wall Motor (GWM), in a statement made ahead of the Bangkok International Motor Show.

GWM has already commissioned its EV manufacturing plant in Rayong and is prepared to challenge other contenders planning to establish production facilities in Thailand. The company foresees a surge in competition within the domestic EV market as EV availability, predominantly from Chinese manufacturers, continues to expand.

Echoing this sentiment is Thai-Chinese joint venture SAIC Motor-CP, the producer of MG cars. The venture foresees the potential for a price war among manufacturers due to the prevailing market circumstances, said Pongsak Lertruedeewattanavong, Vice-president of MG Sales Thailand.