Thailand’s automobile production witnessed a significant drop of 16.62% in July compared to the same month last year, amounting to 124,829 units, primarily attributed to dwindling domestic sales, according to the Federation of Thai Industries. This marks the 12th consecutive month of contraction in production.
During the period of January to July this year, car production experienced a 17.28% decline year-on-year, totaling 886,069 units, as confirmed by the federation.
Surapong Paisitpattanapong, the spokesperson of the FTI’s automotive industry division, highlighted a notable reduction in production for domestic sales, particularly for pickup trucks, during a press conference.
The diminished local sales are reportedly linked to stricter auto loan regulations by banks due to heightened household debt levels, resulting in a 20.58% drop in domestic car sales in July compared to the previous year.
Thailand, recognized as Southeast Asia’s primary automotive production hub and a key export center for leading automobile manufacturers such as Toyota and Honda, emphasizes pickup trucks as a significant segment in its manufacturing portfolio.
The federation recently revised down its domestic sales projection for the year to 550,000 vehicles from the initial estimate of 750,000 units. Similarly, the production target for 2024 has been adjusted to 1.7 million units, down from the previous forecast of 1.9 million vehicles. In 2023, Thailand’s total vehicle production stood at 1.84 million units.
