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BusinessToday
29-04-2025
- Automotive
- BusinessToday
Thailand's Auto Production Down 6.9% In March
Thailand's auto production continued to contract in March but at a slower pace due to higher output of electric vehicles (EV) for the domestic market, data from the Federation of Thai Industries (FTI) showed on Tuesday. Thai auto manufacturers produced 129,909 vehicles last month, down 6.09 percent from a year earlier and easing from a 13.62 percent decline in February, mainly owing to a major fall in trucks and fuel-powered passenger cars, according to the FTI. For the first quarter of 2025, auto production slumped 14.88 percent over the previous year to 352,499 units, despite significant growth in plug-in hybrid and pure EVs, said FTI Automotive Industry Club spokesperson Surapong Paisitpattanapong. Domestic auto sales dipped 0.54 percent year-on-year to 55,798 units in March as sales of pickup trucks dropped amid tightened lending practices among financial institutions, high household debt, and a slowing economy, Surapong told a news conference. The Southeast Asian country's finished car exports plunged 14.91 percent from a year earlier to 80,914 units in March, attributed to model changes for certain passenger vehicles and stricter carbon emission regulations in some markets, Surapong said. Related
Yahoo
26-03-2025
- Automotive
- Yahoo
Thai vehicle sales decline continues in February
Thailand's new vehicle market continued to decline in February 2025, with sales falling by 7% to 49,313 units from an already weak 52,843 units a year earlier, according to the latest wholesale data released by the Federation of Thai Industries (FTI). Last month's market decline, from very depressed year-earlier levels, followed a steeper 12% drop in January - prompting some market analysts to speculate that the downturn of the last two years may be close to bottoming out. Much of the decline has been blamed on stricter lending criteria introduced by banks and auto finance companies in response to rising levels of non-performing loans (NPLs), leaving the country's highly indebted consumers and small businesses struggling to access financing. The auto loan rejection rate is reported to have reached 70% last year. Thailand is now South-east Asia's third-largest vehicle market after Indonesia and Malaysia, with FTI data showing sales fell by 26% to 572,675 units last year from 775,780 in 2023 - the lowest level since 2009. Vehicle sales in the first two months of 2025 fell by a further 10% to 97,395 units from 107,657 units in the same period of 2024, despite the latest government data showing economic growth in the country continued to accelerate in the fourth quarter of 2024, to 3.2% year-on-year from 3.0% in the third quarter and 2.0% in the first half of the year. Sales of pickup trucks are estimated to have fallen by 15% to 23,254 units year-to-date. Thailand remains the ASEAN region's largest vehicle producer, despite a 20% drop in output to 222,590 vehicles year-to-date, with production for export dropping by 16% to 153,579 units – reflecting increased competition in global markets from China-based automakers and also due to tougher emissions regulations in some key markets, according to FTI spokesperson Surapong Paisitpattanapong. The Thai government announced earlier this month it will make available THB5bn for a loan guarantee programme to support the country's struggling pickup segment. The programme is scheduled to run from the beginning of April until the end of the year and will offer loan guarantees for small and medium-sized businesses planning to purchase pickup trucks for business purposes. "Thai vehicle sales decline continues in February" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
25-03-2025
- Automotive
- Reuters
Thailand car production drops 13.6% y/y in February on weaker sales, exports
BANGKOK, March 25 (Reuters) - Car production in Thailand dropped 13.62% in February from a year earlier, as a lengthy decline in domestic sales and exports squeezed output for a 19th straight month, the Federation of Thai Industries said on Tuesday. The fall in production to 115,487 units, however, was smaller than January's 24.63% year-on-year slump. Thailand is Southeast Asia's biggest autos production centre and an export base for some of the world's top automakers, including Toyota (7203.T), opens new tab and Honda (7267.T), opens new tab. "The less negative figures in February are not a sign of recovery yet because the numbers are very negative and rejection rates of autos loans are still high," Surapong Paisitpattanapong, spokesperson for the FTI's automotive industry division, told a press conference. "We have to wait and see in March for a clearer picture," he said, adding there were more working days in February than in January. Domestic car sales dropped 6.68% in February from a year earlier to 49,313 units, after a drop of 12.26% in the previous month, weighed down by tightened auto loans, particularly for pickup trucks, due to high household debt, the federation said. Thailand's household debt stood at 16.34 trillion baht ($481 billion) at the end of September 2024, or equivalent to 89.0% of gross domestic product, among the highest ratios in Asia. A government guarantee for pickup truck loans should help sales and the overall economy, Surapong said. Domestic sales typically account for just under half of Thailand's output and about a third of vehicles sold at home are pickup trucks. Exports fell 8.34% in February from a year earlier to 81,323 units after a drop of 28.13% the previous month, due mainly to increased competition from Chinese car brands and emission controls in some countries, Surapong said. The federation will closely monitor the United States' policy on auto tariffs, he said. Last month, U.S. President Donald Trump said levies on automobiles would come as soon as April 2. The federation has forecast car production to rise 2% this year after declining 20% in 2024 to record the lowest output in four years. ($1 = 33.98 baht)
Yahoo
27-02-2025
- Automotive
- Yahoo
Thai car production slumps 24.63% in January as sales, exports fall
BANGKOK (Reuters) - Car production in Thailand fell a surprisingly large 24.63% in January from a year earlier to 107,103 units due to weak domestic sales and exports, the Federation of Thai Industries said on Monday. Thailand is Southeast Asia's biggest autos production centre and an export base for some of the world's top automakers, including Toyota and Honda. "I was very shocked. The production numbers are really low," Surapong Paisitpattanapong, spokesperson for the FTI's automotive industry division, told a news conference. The output fall was larger than the 17.37% year-on-year drop in December, and was the 18th straight month that production had declined. Domestic car sales dropped by 12.26% in January from a year earlier to 48,092 units, after a drop of 20.94% in the previous month, weighed down by tightened auto loans due to high household debt, the federation said. Exports tumbled 28.13% in January from a year earlier to 62,321 units, the lowest in 33 months, due to increased competition from Chinese cars, compared with a drop of 15.46% in the previous month, Surapong said. Australia, the Philippines and Japan were Thailand's top three car export markets last year. The federation will closely monitor expected government measures to help with auto loans as well as the United States' policy on auto tariffs, he said. Earlier this month, U.S. President Donald Trump said levies on automobiles would come as soon as April 2. Sign in to access your portfolio
Reuters
27-02-2025
- Automotive
- Reuters
Exclusive: Thailand weighs car trade-in scheme to revive sector, officials say
BANGKOK, Feb 27 (Reuters) - Thailand is in early discussions with car makers to introduce a car trade-in and scrapping scheme in a bid to revive an industry hit by its biggest crisis in decades, three industry officials and two sources said. Output in the Southeast Asian automobile hub, besieged by a flood of new EVs, has plummeted for more than a year, following a slowdown in exports and weak domestic sales, while tighter credit at a time of soaring household debt hit vehicle buying. The discussions are in early stages and have not previously been reported. The scheme would see consumers trade in old vehicles in exchange for a discount on their next vehicle purchase, with traded-in vehicles scrapped, the officials said. "Car makers are pushing hard for this because they want to sell cars," Sompol Tanadumrongsak, president of the Thai Auto-Parts Manufacturers Association, told Reuters, adding that a 10-year age threshold was being considered for scrapped vehicles. The association is among industry groups that holds monthly meetings with government agencies, including the investment board and the industry ministry. Officials at Thailand's industry ministry did not respond to telephone calls from Reuters to seek comment, however. Auto production in Thailand fell a tenth last year to a four-year low, with domestic sales and exports falling 26% and 8.8%, respectively. Production fell in January for an 18th consecutive month, plunging more than 24% on a yearly basis. The industry, which accounts for 10% of GDP, wants to revive sales amid a sluggish economy and disruption caused by Chinese EV makers such as BYD and Great Wall Motors which have poured more than $3 billion into facilities in Thailand. Those factories are pumping out new cars and slashing prices, challenging the dominance of Japanese auto makers such as Toyota (7267.T), opens new tab and Honda (7267.T), opens new tab, making a trade-in scheme more attractive for buyers. "There have been discussions about the measure but it has not been finalised yet," said Surapong Paisitpattanapong, a spokesperson for the automotive division of the Federation of Thai Industries, which sprawls across 47 sectors. "One reason is because it involves many agencies." Another aspect of the talks considered the age of cars to be scrapped, said a government source, who sought anonymity. "There will be good news soon," added the source. "We have discussed the details. There has been discussion about the end of life of the cars." Toyota, the market leader in Thailand, is pushing hard for the car scrapping proposal, added the government source and a person in the auto industry familiar with the matter, who also sought anonymity as the issue is a sensitive one. "Toyota stands to benefit through their scrapping subsidiary, Green Metals," said the industry source, adding that issues from financing to recycling infrastructure and management still needed to be hammered out. Toyota did not immediately respond to a Reuters request for comment on the proposal and the role of Green Metals. The industry ministry and Toyota held meetings last week on ways to stimulate the Thai auto sector, the government said in a statement, but did not mention a scrapping scheme. "There is a proposal from the Federation of Thai Industries and the private sector, but it has not reached the finance ministry yet," Kulaya Tantitemit, head of the excise department, which oversees taxes, told Reuters. Early discussions put the burden of funding and managing the scrapping scheme on the auto companies, said Sompol, adding that sellers of new cars were envisaged to be responsible for managing the scrap. A car scrapping scheme for old cars to be phased out would create new investments and jobs in Thailand, as it has few auto recycling plants such as that owned by Toyota, said Suwit Chobpradu, vice president of Thailand's Used Car Association. "This would stimulate the market more than any policy," he added.
