Thailand, a pivotal hub for automotive manufacturing in Southeast Asia, reported a 17.37% decline in car production for December compared to the previous year, according to data released by the Federation of Thai Industries on Tuesday.
This brings the production figures to 104,878 units for the month, highlighting a continuation in declining trends as the sector recorded its 17th consecutive month of contraction. The previous month had already seen a sharper 28.23% drop year-on-year.
Renowned for being a major manufacturing base for global giants like Toyota and Honda, Thailand is grappling with diminished domestic demand and export challenges.
In a move reflecting broader economic pressures, a luxury car importer had earlier projected a 25% reduction in high-end vehicle sales in Thailand for 2024, estimating sales to fall to 30,000 units from an earlier 40,000. The downturn mirrors the strain of a sluggish economic environment on consumer spending capabilities within the country.
Simultaneously, as the automotive landscape evolves, Thailand’s Excise Department is paving the way for future-oriented mobility solutions by overhauling tax structures. The forthcoming tax adjustments aim to catalyze the transition from traditional internal combustion engine vehicles to greener alternatives, including electric and hydrogen-powered technologies.
