The Federation of Thai Industries (FTI) is maintaining its car production target at 1.5 million units this year, though high household debt, weak purchasing power and strict lending conditions are projected to challenge the industry.
The output target comprises 1 million units for export and 500,000 units for the domestic market, said Surapong Paisitpatanapong, FTI vice-chairman and spokesman for its Automotive Industry Club.
The FTI plans to monitor the potential impact of increased tariffs on imports in the US, which new president Donald Trump has threatened.
In 2024, Thailand's car production tallied 1.46 million units, less than the target of 1.5 million units.
Production for export fell by 12.1% year-on-year to 1 million units, while output for the domestic market declined by 33.1% to 459,856 units.
Thailand's domestic car sales last year recorded the lowest level in 14 years at 572,675 units.
The decline was attributed to the economic slowdown, high loan rejection rates by financial institutions and elevated household debt.
"The FTI hopes domestic car sales will recover this year if the government introduces more stimulus measures and bolsters consumer confidence," he said.
Last year domestic car sales decreased by 26.2% year-on-year to 572,675 units, he said.
The FTI said domestic car sales in December 2024 fell by 20.9% year-on-year to 54,016 units because of the same obstacles that persisted all year.
Thailand's car exports in 2024 decreased by 8.80% year-on-year to 1.01 million units.
In December, car exports dropped by 15.5% year-on-year to 76,346 units.
"Geopolitical conflicts have slowed economies across the world, particularly Thailand's trading partners," said Mr Surapong. "Meanwhile, China exported more electric vehicles [EVs] and there are strict carbon tax regulations in various countries."
For the EV sector, last year the registration of battery EVs tallied 227,470 units, a 72.5% increase year-on-year. Hybrid EVs registered 469,543 units, up 36.7% year-on-year, while 63,148 plug-in hybrids were registered, a gain of 17.1%.
