Thailand’s Automobile Production Experiences Significant Decline in September
Thailand’s automobile production fell by 25.5% in September year-on-year, influenced by a decline in domestic sales and tightening credit conditions. Non-performing loans related to automobiles reached 254 billion THB. Car sales dropped 37.1% to 117,000 units, while exports decreased by 10.8%.
In September, Thailand experienced a significant decrease in automobile production, which fell by 25.5% compared to the same month in the previous year. This decline has been attributed to a significant downturn in domestic sales, largely influenced by stricter credit conditions imposed by financial institutions. According to the Federation of Thai Industries (FTI), non-performing loans related to automobiles surged to 254 billion THB (approximately US$7.5 billion) during the second quarter of 2024, marking an increase of 29.7% year-on-year. Surapong Paisitpattanapong, a representative from the automotive division of the federation, reported that car sales within Thailand plummeted 37.1%, reaching 117,000 units in September. Likewise, automobile exports decreased by 10.8% for the same month compared to last year, reflecting economic challenges faced by trading partners as well as repercussions from the ongoing conflict in the Middle East. Thailand stands as Southeast Asia’s largest automobile production center and serves as a vital export hub for numerous prominent automobile manufacturers, including Toyota and Honda.
The automobile industry in Thailand is critical to the nation’s economy, being the largest production hub in Southeast Asia. The industry not only caters to local demand but also serves as a significant export base for many international automotive brands. Recent economic conditions, especially tightening credit and rising non-performing loans, have adversely affected the domestic automobile market, culminating in decreased production and sales figures. Furthermore, external factors such as the global economic environment and international conflicts have exacerbated these challenges.
The automotive sector in Thailand is currently facing substantial challenges, including a notable decrease in production and sales, primarily due to stringent lending conditions and economic instability. With domestic sales plummeting and exports declining, the overall outlook remains arduous for this crucial industry, highlighting the need for strategic adjustments to navigate these economic fluctuations.
Original Source: vietnamnews.vn
