The Federation of Thai Industries (FTI) has lowered its projection for automobile production in 2019 from 2.15 million units to 2 million, blaming a bearish sentiment in both local sales and exports.
The FTI said on Friday that projected local car sales for the calendar year fell from 1.05 million cars to 1 million. Sales in September contracted for the fourth month in a row, with 76,195 units sold, down by 14.1% on the same month last year.
The FTI's automotive industry club reported that in September sales dropped by 5.7% from the previous month.
Surapong Paisitpatanapong, the club's spokesman, said tighter loan conditions and rejection of applications by local financial institutions was a key factor affecting sales from June to September, amid a warning from the Bank of Thailand about the high level of household debt.
Many rural provinces also suffered widespread flooding, resulting in low local purchasing power.
For exports, the club cut its earlier full-year projection from 1.1 million units to 1 million, saying the export sector was suffering from the continuing US-China trade war.
The club reported that the car exports in September dropped 6.36% to 97,540 vehicles. Most shipment destinations reduced car orders from Thailand - Oceania, Europe, Africa, and North, Central and South America.
Only shipments to Asia and the Middle East showed growth in September.
The vehicle exports value in September was 51.71 billion baht, down 4.96% on the same month last year.