Things aren’t rosy for the automotive sector in Thailand this year. Vehicle manufacturing and sales numbers in Thailand have declined significantly in the first 11 months of 2024, dropping by 20.14% and 26.69% respectively, year-on-year, the Bangkok Post and The Nation report.
The Federation of Thai Industries’ (FTI) Automotive Industry Club, which reported the numbers earlier this week, attributed the slump in sales to stricter vehicle loan approval processes by financial institutions, driven by the economic slowdown and a surge in non-performing loans (NPLs) among car buyers in the third quarter.
Surapong Paisitpatanapong, vice-chairman of the FTI and the spokesman for the auto club, said that from January to November, vehicle production in Thailand amounted to 1,364,119 units, marking a 20.14% decline compared to the same period last year. Of these, 117,251 vehicles were produced in November, down 28.23% from the same period last year.
The FTI remains hopeful that manufacturing output will reach the new lower target sof 1.5 million units set for 2024, down from an initial 1.7 million units, the lowest target seen since 2021. The 1.7 million target was itself reduced in July from an earlier 1.9 million units.
In terms of sales, Surapong said that 518,659 vehicles were sold from January to November, a 26.69% decrease in volume compared to last year. In November, 42,309 vehicles were sold, which was a 12.25% increase from October but a 31.34% decline from the same month last year. Meanwhile, NPLs among vehicle buyers rose 22.8% in the third quarter of this year, compared to the same period in 2023.
As for exports, Thailand shipped 942,867 vehicles from January to November 2024, a decrease of 8.21% from the same period last year. In November, exports amounted to 89,646 vehicles, a 10% decline from November 2023.
In November, sales of all vehicle types in the country fell, except for plug-in hybrids, which saw a year-on-year increase of 346% to 223. However, their sales volume was small, making up only 0.53% of total volume. In terms of overall sales, internal combustion engine-powered vehicles were the biggest movers, with a 28.3% share of November’s overall sales, followed by pick-ups (27.1%) and hybrid electric vehicles (17.9%).
The FTI expects vehicle sales, exports and manufacturing numbers in 2025 to be similar to that from this year. “Thai GDP must grow by 4-5% in order to boost the economy and the automotive sector,” Surapong said.
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