In May, the Federation of Thai Industries reported a 16.19% decrease in car production compared to the same period last year, with 126,161 units produced. This decline was primarily attributed to a reduction in the manufacturing of pickup trucks.
Compared to April’s 11.02% year-on-year decrease, the drop in May indicates a further slowdown in the industry. From January to May, car production in Thailand decreased by 16.88% year-on-year to 644,951 units.
The federation indicated that the decrease in car production is largely a result of reduced output of pickup trucks, influenced by weakened demand caused by stricter auto lending practices by banks in response to high household debt levels.
Furthermore, domestic car sales in Thailand also took a hit, with a 23.38% decline in May from the previous year following a 21.49% decrease in April.
Thailand serves as a key hub for automobile production in Southeast Asia and a major export center for leading global automakers such as Toyota and Honda. Pickup trucks are among the prominent vehicles manufactured in the country.
