Thailand’s Car Production and Sales See a Sharp Decline in March

The Federation of Thai Industries reported a 23.08% decline in car production in Thailand for March compared to the same period last year, with output totaling 138,331 units. This drop follows February’s decrease of 19.28% year-on-year.

During the January-March quarter, car production in Thailand decreased by 18.45% compared to the previous year, amounting to 414,123 units. The FTI noted that lower output of pickup trucks, resulting from reduced demand due to stricter auto loan conditions from financial institutions, has been a contributing factor to the decline in car production.

Additionally, domestic car sales in Thailand recorded a 29.83% year-on-year decrease in March, following a 26.15% drop in the preceding month, as reported by the federation.

Thailand serves as a prominent automotive production hub in Southeast Asia and a manufacturing base for leading global car manufacturers such as Toyota and Honda, with pickup trucks being among the key products manufactured. Recent years have seen an emergence of Chinese electric vehicle brands like BYD and Great Wall Motor in the Thai auto sector, facilitated by government tax incentives and subsidies.

The FTI has projected car production to reach 1.9 million vehicles in Thailand this year, surpassing the 1.84 million units manufactured in 2023. Moreover, the Excise Department announced on Wednesday that Thailand aims to produce between 350,000 and 525,000 electric vehicle units by 2027.