Thailand’s Car Sales Grow at Slower Pace in June amid Chip Shortage and Rising Inflation

Car sales in Thailand rose at a slower pace in June as shortage in semiconductor remained the bigger problem and amid cars ban by Myanmar.

As a major hub for manufacture and export for the world’s top carmakers, including Toyota and Honda, the car industry accounts for about 10% of Thailand’s GDP.

Domestic car sales in June rose 4.58% from a year earlier, but saw a significant drop when compared to a 15.71% rise in May. However, annual car exports saw a 11% drop in June.

Mr. Surapong Paisitpattanapong, a spokesperson for Federation of Thai Industries in the auto sector said that the chip shortage is a downside risk that the committee will have to reevaluate its sales projection. An increase in consumer prices contributed to lower sales, while a car import ban by Myanmar also led to a significant drop in car exports.