Thailand’s car production in 2024 dropped 20% from the previous year to a four-year low, owing to weaker domestic sales and exports, although production is expected to rise 2% this year, the Federation of Thai Industries said Tuesday.
Car output dropped to 1.47 million units from 1.83 million in 2023. Production on a year-on-year basis contracted for the 17th successive month in December, falling 17.4% to 104,878 units, the FTI said.
Domestic sales fell 26.2% to the lowest level in 15 years, at 572,675 units, due to weaker demand as banks have tightened auto loan rules amid high household debt, said Surapong Paisitpattanapong, spokesperson for the FTI’s automotive industry club.
“Car loan rejection rates have jumped to 70%,” he told a press conference.
This year, car production is projected at 1.5 million units, of which 1 million will be for export and the rest for the local market, the federation said.
The improvement will be supported by higher production of electric vehicles required under a state incentives scheme, and an expected rise in sales following government stimulus measures, said Mr Surapong.
Car exports last year dropped 8.8% to 1 million units, due to geopolitical issues, competition from EVs and strict carbon emission measures in several countries, he said.
Thailand is Southeast Asia’s biggest auto production centre and an export base for some of the world’s top carmakers, including Toyota and Honda.
Earlier this month, a luxury car importer reported that domestic sales of luxury cars in Thailand were estimated at 30,000 in 2024, down 25% from 40,000 the year before, as prospective buyers have been unable to avoid the impact of the sluggish economy.
Meanwhile, the Excise Department is preparing restructure tax rates on automobiles to support the transition from internal combustion engine (ICE) vehicles to future mobility technologies, including electric and hydrogen-powered vehicles.
