Car production down 23.1% y/y in March

Domestic vehicle sales down

Car production in Thailand dropped 23.08% in March from a year earlier to 138,331 units, the Federation of Thai Industries said on Thursday.

The figure compared with February's 19.28% year-on-year drop. In the January-March period, car production fell 18.45% from a year earlier to 414,123 units, the FTI said.

The federation has said car production has been down because of lower pick-up truck output following weaker demand due to tighter auto loans from financial institutions.

Domestic car sales dropped 29.83% in March from a year earlier, after a fall of 26.15% year-on-year in the previous month, the federation said.

Thailand is Southeast Asia's biggest autos production centre and an export base for some of the world's top carmakers, including Toyota and Honda, with pickup trucks among the key vehicles manufactured. In recent years, Chinese electric vehicle brands like BYD and Great Wall Motor have been making inroads into the Thai auto sector, helped by government tax incentives and subsidies.

The federation has predicted car production at 1.9 million vehicles this year after 1.84 million made in 2023. On Wednesday, the excise department said Thailand expected to produce between 350,000 and 525,000 electric vehicle units by 2027.