Thailand auto production could fall by 50% this year

Thailand auto production could fall by 50% this year

Thailand’s auto production is expected to take big tumble of 37% to 1.33 million units this year, and according to the Federation of Thai Industries (FTI) auto club, the drop could be as bad as 50% (to one million units) should the Covid-19 crisis drags into June, the Bangkok Post reports.

The latest 1.33 million units forecast consists of 665,000 units for export and 665,000 units for domestic consumption, split evenly. Previous projections were two million units in January and 1.9 million units in March.

“The FTI is waiting to see the full effects of the Covid-19 outbreak on the automotive industry. It’s difficult to say at the moment,” said Surapong Paisitpatanapong, the FTI auto club’s spokesman.

So far, first quarter 2020 figures are 19.2% down at 453,682 units. In March, 146,812 cars rolled out of factories, a 26.2% year-on-year dip, partly because of factory closures due to Covid-19. In Thailand, the Songkran festival falls in April and carmakers typically take a break until the end of the month.

While exports have naturally dropped (-16.4% in Q1), local sales failed to offer support – car sales in the Land of Smiles dropped for a 10th straight month in March, down 41.7% year-on-year. February sales were 17.1% lower.

According to the FTI auto club, Thailand’s automotive industry, including parts makers, employ around 750,000 people. For now, there are no plans to lay off workers, but carmakers have cut hours for many staff.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Francis Lim on Apr 30, 2020 at 6:34 pm

    Once the MCO is lifted, all hell will break loose to get the public to buy their vehicles with all kinds of discount.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Habisla Siam

    Like or Dislike: Thumb up 5 Thumb down 1
  • vivizurianti on Apr 30, 2020 at 9:27 pm

    Malaysia situation isnt any better. Lost of job, lost of business, lost of customers, lost of income, lost of life, etc……Brace yourself real soon.

    Like or Dislike: Thumb up 1 Thumb down 1
    • P.Alyanna on May 01, 2020 at 12:13 pm

      We are still better than Thailand though. Due to our experience with AFC98/99, we had been more resilient to outside factors as compared with Thailand. This you can see from the wild swing in Thai Baht currency valuation as compared to RM which is a lot more stable.

      Like or Dislike: Thumb up 5 Thumb down 0
  • Jamal on May 01, 2020 at 11:43 am

    Happy days

    Like or Dislike: Thumb up 0 Thumb down 0
 

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