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Bangkok Post
30-07-2025
- Automotive
- Bangkok Post
Output ticks up for automobiles
Thailand's Manufacturing Production Index (MPI) increased by 0.58% year-on-year to 97.35 points in June, driven by the recovery of the car market, an increase in exports and state stimulus measures, says the Office of Industrial Economics (OIE). However, the MPI fell by 3.47% from May when it was 100.79 points. Car bookings at the 12-day Bangkok International Motor Show, which ended in early April, prompted car manufacturers to increase production to deliver cars to customers, contributing to the higher May MPI. Passakorn Chairat, director-general of the OIE, is upbeat about the MPI in June. "The increase in MPI reflected a positive sign for the manufacturing sector," he said. In June, car production increased by 17% year-on-year, driven by growing demand for hybrid electric vehicles and battery electric vehicles in the domestic and overseas markets. Mr Passakorn said this is a positive for car manufacturers struggling to deal with sluggish sales, caused mainly by buyers' difficulties in accessing auto loans as banks and car financing companies maintain strict lending criteria given the high level of household debt. According to the Bank of Thailand, household debt continues to decline, falling to 87.4% of GDP in the first quarter of 2025, attributed to weaker loan demand from borrowers and stricter lending standards from financial institutions. Household debt was 88.4% of GDP in the previous quarter. Other industries that contributed to the June MPI include electronic products and palm oil. Electronics and printed circuit board manufacturing increased by 6.18% year-on-year because demand rose for semiconductors and integrated circuits in the US market. Palm oil production gained by 9.84% year-on-year, driven by new purchase orders from China, India and Myanmar. Thailand's capacity utilisation rate was 59.6% in June. Officials continue to monitor the impact of the US's reciprocal tariff, household debt levels and the influx of low-cost imports on the Thai market as these incidents can deal a blow to the manufacturing sector, noted the OIE.
Bangkok Post
01-07-2025
- Business
- Bangkok Post
Manufacturing production index up for 2 months in a row y/y
The political risk that threatens to undermine the government should become clearer this month, indicative of whether the manufacturing sector will decelerate after the Manufacturing Production Index (MPI) rose by 1.8% year-on-year in May for a second consecutive month to 100.79 points, says the Office of Industrial Economics (OIE). The Constitutional Court is scheduled to convene on Tuesday to consider a petition submitted by the Senate in a bid to oust Prime Minister Paetongtarn Shinawatra over a contentious leaked recording of a phone call with Cambodian Senate president Hun Sen on the Thai-Cambodian territorial dispute. "The political problem has just started. Whether it will escalate or how the government will deal with it to prevent an impact on investment will soon be seen," said Passakorn Chairat, director-general of the OIE. Investment will hardly avoid the impact of growing concern over the government's stability as the premier is losing the trust of the public, Apichit Prasoprat, vice-chairman of the Federation of Thai Industries, said earlier. As of the end of May, the MPI grew steadily, driven by several factors, including car manufacturing, which increased by 12.8% year-on-year, and the value of exports, up by 18.4% cumulatively over an 11-month period. "Car bookings at the Motor Show prompted manufacturers to increase production to deliver cars to customers," said Mr Passakorn. Factories which sell products overseas also increased production to increase exports ahead of US President Donald Trump's reciprocal tariff of 36% on Thai imports, estimated to come into effect around July 8. In May, palm oil production soared by 25% due to more output and purchase orders from India, China and Myanmar. Sugar manufacturing also increased by 21% due to an increase in sugar cane as a result of an uptick in rainfall. Farmers also expanded their plantations because of higher crop prices. Capacity utilitsation stood at 61% in May, up from 56.6% in April. However, local air conditioner production fell by more than 10% year-on-year in May despite strong exports. This was due to a drop in domestic sales amid the rainy season and the import of low-cost air conditioners.
Bangkok Post
30-06-2025
- Business
- Bangkok Post
MPI up for two months in a row
The political risk that threatens to undermine the government should become clearer this month, indicative of whether the manufacturing sector will decelerate after the Manufacturing Production Index (MPI) rose by 1.8% year-on-year in May for a second consecutive month to 100.79 points, says the Office of Industrial Economics (OIE). The Constitutional Court is scheduled to convene on Tuesday to consider a petition submitted by the Senate in a bid to oust Prime Minister Paetongtarn Shinawatra over a contentious leaked recording of a phone call with Cambodian Senate president Hun Sen on the Thai-Cambodian territorial dispute. "The political problem has just started. Whether it will escalate or how the government will deal with it to prevent an impact on investment will soon be seen," said Passakorn Chairat, director-general of the OIE. Investment will hardly avoid the impact of growing concern over the government's stability as the premier is losing the trust of the public, Apichit Prasoprat, vice-chairman of the Federation of Thai Industries, said earlier. As of the end of May, the MPI grew steadily, driven by several factors, including car manufacturing, which increased by 12.8% year-on-year, and the value of exports, up by 18.4% cumulatively over an 11-month period. "Car bookings at the Motor Show prompted manufacturers to increase production to deliver cars to customers," said Mr Passakorn. Factories which sell products overseas also increased production to increase exports ahead of US President Donald Trump's reciprocal tariff of 36% on Thai imports, estimated to come into effect around July 8. In May, palm oil production soared by 25% due to more output and purchase orders from India, China and Myanmar. Sugar manufacturing also increased by 21% due to an increase in sugar cane as a result of an uptick in rainfall. Farmers also expanded their plantations because of higher crop prices. Capacity utilitsation stood at 61% in May, up from 56.6% in April. However, local air conditioner production fell by more than 10% year-on-year in May despite strong exports. This was due to a drop in domestic sales amid the rainy season and the import of low-cost air conditioners.
