Car production in Thailand saw a modest increase of 1.78% in June compared to the same period last year, reaching a total of 145,557 units. The rise in production was primarily driven by a surge in exports, while local sales experienced a contraction, according to the Federation of Thai Industries (FTI).
In particular, car exports, which are a crucial component of Thailand’s shipments, recorded a notable year-on-year jump of 20.22% in June, totaling 88,826 units. This growth followed a 12.25% increase in May and was attributed to an easing of the microchip shortage, as explained by Surapong Paisitpattanapong, the spokesperson for the FTI’s automotive industry division.
Despite the positive performance in exports, the domestic car market faced challenges, with sales in June dropping by 5.16% compared to the previous year, accounting for 64,440 units. This decline came on the heels of a modest 0.55% rise in May, highlighting a weaker demand in the local market.
Thailand, known for being a significant regional vehicle production and export hub for major car manufacturers such as Toyota and Honda, experienced a growth rate that lagged behind May’s impressive 16.48% surge in car production.
Furthermore, the truck segment experienced a sharp downturn in June, with sales plummeting by approximately 33.8% year-on-year. This decline was attributed to banks tightening auto loan regulations due to concerns over high household debt levels, as reported by Surapong.
Looking ahead, the FTI revised its projections for domestic car sales this year, lowering the expected figure to 850,000 units from the initial projection of 900,000 units. This adjustment reflects the current challenges faced by the local automotive market.
