Bangkok: Car production and sales in September 2024 experienced a significant decline across all sectors, including combustion engines and electric vehicles, prompting the Federation of Thai Industries (FTI) to consider revising its targets. The total production for the month was 122,277 vehicles, a decrease of 25.48% compared to the previous year, with only 39,048 cars sold, marking a 37.11% drop and the lowest sales figure in 53 months.
According to Thai News Agency, Mr. Surapong Paisitpatanapong, advisor to the chairman of the Automotive Industry Club and spokesman for the Automotive Industry Club, FTI, reported that both domestic production and exports saw declines in September 2024. Production for export comprised 87,666 units, or 71.69% of total production, but still reflected a decrease of 15.78%. From January to September 2024, the total production amounted to 1,128,026 vehicles, representing an 18.61% reduction from the same period in 2023.
Domestic car sales totaled 39,048 units in September, a 13
.59% decrease from August 2024. This decline was attributed to stricter credit approval processes due to high special and bad debts, compounded by a sluggish domestic economy that grew by only 2.3% in the second quarter. Consequently, car sales for the first nine months of 2024 fell by 25.25% to 438,659 units compared to the same period last year.
Completed car exports in September reached 80,254 units, down 6.75% from the previous month and 17.67% from September 2023. This drop was linked to ongoing Middle East conflicts affecting shipping and spending in partner countries. Despite this, the Australian market showed growth, contrasting with declines in other regions.
The electric vehicle sector also faced challenges, with Battery Electric Vehicles (BEVs) production falling to 4,574 units, a 33.53% decrease. New BEV registrations dropped by 25.81% to 6,606, though cumulative registrations for the year showed an 11.67% increase. Plug-in Hybrid Electric Vehicles (PHEVs) registrations also declined by 27.76%.
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r. Surapong highlighted the industry’s concerns over high household debt levels, which stand at 90% of GDP. He noted that banks remain cautious in lending, affecting both car and real estate markets. Despite a decrease in hire-purchase car debts, bad debts have risen, exacerbating the economic strain since the COVID-19 pandemic. The FTI plans to hold discussions in November to reassess and adjust production and sales targets, both domestically and for exports.
Looking forward, Mr. Surapong expressed hope that increased investment, as indicated by high Board of Investment (BOI) applications, could spur economic growth. He emphasized the need for job creation and income generation to alleviate household debt and boost purchasing power, ultimately aiming for growth in the manufacturing sector.
Source: Thai News Agency