Thai car production expected to grow

Car production in Thailand is expected to grow, according to the Federation of Thai Industries. With the rates of Covid-19 infections falling and the careful management of the semiconductor shortage, the target of 1.6 million units is expected to be surpassed. Lockdowns and other restrictions are being eased in many countries that buy cars produced in Thailand, which means that people will be out driving and buying cars again.

Vehicle purchases went into decline during the pandemic. Then in the past few months there was a semiconductor shortage, which led to delays in automobile production across the globe. But Thai authorities are ensuring that both of these issues are being addressed.

The vice-chairman of the Federation of Thai Industries Surapong Paisitpatanapong described how the improvement of the global Covid-19 situation has led to an increase in business confidence and consumer purchasing power. Semiconductor manufacturers are working to supply Thai car companies with the needed chips, as well.

“The state lockdown easing urges people to buy new cars and not to delay plans to receive cars at showrooms.”

Surapong also explained that the government’s plan to boost the tourism industry by allowing vaccinated travelers starting November 1 will be good for business, too. He said that the FTI had a goal of 1.6 million cars being produced in Thailand this year. About half that number will be for domestic markets, and the other half for export. Domestic production increased by 25.6% from January to September of this year, as compared to last year. In that time, automobile production for export rose by 37.9%

As the Covid-19 situation improves, financial institutions are easing their criteria to grant car loans, which will also lead to an increase in car purchases.

SOURCE: Bangkok Post