Vehicle production in January dropped 12.99% year-on-year to 156,266 units, hit by contractions in local sales and exports, according to the monthly report from the Federation of Thai Industries (FTI).
However, January output was up 16.44% from December, The FTI's automotive industry club said.
Domestic sales stood at 71,688 cars in January, down 8.2% y/y.
Club spokesman Surapong Paisitpatanapong said local banks' tight vehicle-loan conditions meant fewer approvals for car buyers, resulting in local distributors being unable to close sales.
Sales contracted year-on-year in January for the 8th month in a row.
Car shipments overseas were reported at 65,295 units in January, down sharply by 19.96% y/y.
Mr Surapong said shipments declined to almost every region, blaming it on the bearish economy of each destination. Only exports to the Middle East remained in a growth last month.
FTI had a conservative outlook for car production in 2020, at 2 million units, because of the many global economic difficulties. This projection was a decrease of 0.68% from production in 2019, he said.
Of the targeted production in 2020, 1 million was projected for each segment - local sales and exports, down 0.75% and 5.13% year-on-year, respectively.