Thailand is expected to produce 1.5 million units of passenger cars and trucks this year, the lowest total since pandemic-disrupted 2021, as both domestic sales and overseas shipments slide, according to the Federation of Thai Industries.
The manufacturing group cut its auto output forecast for the second time this year on unfavourable local conditions and signs of export weakness, Surapong Paisitpatnapong, spokesman of the FTI’s automobile industry group, said at a briefing on Monday. In July, the group slashed its outlook to 1.7 million units from an earlier prediction of 1.9 million autos.
Thai vehicle sales have declined steadily this year, with banks reluctant to lend amid near-record household debt and rising bad loans. Prime Minister Paetongtarn Shinawatra’s administration is working on a plan to alleviate the economic drag from household debt that exceeds $500 billion.
The federation cut its forecast for exports to 1.05 million autos from 1.15 million earlier, and output for local sales is expected to fall to 450,000 units from 550,000 units.
Tight bank lending, especially for pick-up trucks, continues to put pressure on local car sales, while escalating unrest in the Middle East is also hurting auto shipments, Mr Surapong said.
In October alone, domestic automobile sales fell 36% from the same period last year to 37,691 units, while auto exports fell 20.2% year-on-year to 84,334 units.