Significant Decline in Thailand’s Automobile Production in September

In September, Thailand’s automobile production decreased by 25.5%, with domestic car sales dropping by 37.1% to 117,000 units. The decline is due to stricter credit conditions, resulting in a rise in non-performing loans. Exports also fell by 10.8% amidst broader economic challenges and regional conflicts.

BANGKOK — The Federation of Thai Industries (FTI) has announced a significant decline in automobile production for September, revealing a decrease of 25.5 percent compared to the same month the previous year. This downturn is largely attributed to a decrease in domestic sales, driven by stricter lending conditions imposed by financial institutions. Surapong Paisitpattanapong, spokesperson for the automotive division of the FTI, indicated that car sales plummeted by 37.1 percent, amounting to only 117,000 units sold during September. Furthermore, exports also experienced a setback, declining by 10.8 percent from the previous year amidst ongoing economic challenges faced by trading partners and complications arising from the conflict in the Middle East.

Thailand stands as the largest automobile manufacturing hub in Southeast Asia, serving as a crucial export base for prominent automotive manufacturers such as Toyota and Honda. However, the current economic climate reflects a growing concern as domestic consumers struggle with access to financing, which has directly impacted sales figures. The FTI reported a staggering increase in non-performing loans related to automobiles, which reached 254 billion THB (approximately 7.5 billion USD) in the second quarter of 2024, marking a year-on-year increase of 29.7 percent.

In conclusion, Thailand’s automotive sector is navigating a difficult landscape characterized by reduced production and declining sales figures, influenced predominantly by stricter credit conditions and external economic pressures. The challenges faced not only threaten domestic market stability but may also impact Thailand’s role as a key player in the global automotive industry.

Original Source: vietnamnews.vn