Thailand’s car production hits brakes, sees 15.75% drop in December

Picture courtesy of Toyota.

Thailand’s car production experienced a significant drop of 15.75% in December, compared to figures from the previous year, marking the fifth consecutive month of decline, according to the Federation of Thai Industries (FTI). The downturn resulted in only 133,621 units being produced, largely due to a reduction in pickup truck output.

This figure is a stark contrast to November’s year-on-year decrease of 14.1%. For the year 2023, the FTI reported a 2.22% decline in car production, with only 1.84 million cars manufactured.

Thailand, the largest auto production hub in Southeast Asia, serves as an export base for several of the world’s leading carmakers. Toyota and Honda are among the key players who utilise this hub, with pickup trucks being the primary vehicle produced.

The FTI’s automotive industry division spokesperson, Surapong Paisitpattanapong, attributed the decline in output largely to financial institutions enforcing stricter regulations on loans for pickup trucks. Alongside the production decrease, December also saw a 17.48% drop in car sales compared to figures from a year prior.

In related news, Germany pledged to increase its stake in the electric vehicle (EV) sector in Thailand, paving the way for the nation to emerge as a regional EV hub, according to Prime Minister Srettha Thavisin. This announcement was made during a press briefing on Thursday, following a discussion with Frank-Walter Steinmeier, President of Germany.

PM Srettha highlighted that the meeting marked Steinmeier’s first visit to the country in 22 years and celebrated the 162 years of cordial relations between the two nations. Germany is currently Thailand’s most significant trading partner within the European Union (EU), while Thailand stands as Germany’s third-largest trading ally within ASEAN.

Both nations have set objectives to elevate their ties to a strategic alliance. The Thai prime minister stated that Germany has shown readiness to back Thailand in its pursuit of renewable energy, aiming to boost electricity production from renewable sources by 50% by 2040.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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