Car production rises in June, local sales drop

Car production rises in June, local sales drop

Workers assemble a vehicle at a factory in Chonburi province. (Photo: Somchai Poomlard)
Workers assemble a vehicle at a factory in Chonburi province. (Photo: Somchai Poomlard)

Car production in Thailand increased 1.78% in June from a year earlier to 145,557 units, mainly for exports as local sales contracted, the Federation of Thai Industries (FTI) said on Tuesday.

Car exports, a key Thai shipment, jumped 20.22% year-on-year to 88,826 units in June after a 12.25% rise in May, as shortage of microchips eased, said Surapong Paisitpattanapong, a spokesperson for the FTI's automotive industry division.

However, domestic car sales in June dropped 5.16% from a year earlier to 64,440 units, after a 0.55% rise in May, he told a virtual briefing.

Thailand's June production growth lagged behind a 16.48% jump in May. The country is a regional vehicle production and export base for some of the world's top carmakers, including Toyota and Honda.

Truck sales slumped about 33.8% year-on-year in June as banks tightened auto loans due to high household debt levels, Mr Surapong said.

The FTI now expects domestic car sales at 850,000 units this year, down from 900,000 units earlier projected, he said.

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