24-8-2023 (BANGKOK) Car production in Thailand experienced a notable uptick in July, surging by 4.72% compared to the same period last year, reaching a total of 149,709 units. The growth was primarily driven by robust demand for exports, as domestic car sales continued to decline. These findings were reported by the Federation of Thai Industries (FTI) on Thursday.
In contrast to the production figures, domestic car sales in July declined by 8.77% year-on-year, with a total of 58,419 units sold. This follows a 5.16% drop in sales observed in June. Surapong Paisitpattanapong, a spokesperson for the FTI’s automotive industry division, attributed this decline to banks tightening their auto loan criteria due to concerns about high levels of household debt.
On the brighter side, car exports from Thailand showed remarkable strength, registering a significant increase of 30.05% in July compared to the same month last year, with a total of 108,052 units shipped abroad. This growth follows a 20.22% rise in exports observed in June.
Thailand has solidified its position as a key regional hub for vehicle production and exports, catering to some of the world’s leading car manufacturers, including Toyota and Honda.
Last month, the FTI revised its 2023 forecast for domestic car sales downward, reducing it from 900,000 units to 850,000 units, citing the ongoing challenges in the domestic market and the impact of tightened auto loans.
