The Federation of Thai Industries recently announced that Thailand’s auto production is expected to fall to 1.5 million units in 2024, the lowest level since the outbreak of the COVID-19 pandemic in 2021. The downward adjustment of production expectations is the second adjustment this year, mainly affected by weak domestic market sales and declining auto exports.
According to the forecast of the Federation of Thai Industries, auto exports in 2024 will be reduced from the previously expected 1.15 million units to 1.05 million units, and local sales are also expected to decrease to 450,000 units, a significant reduction from the original target of 550,000 units. These adjustments in Thailand’s auto industry reflect the sluggish market demand, especially against the backdrop of slowing global economic growth, where weak demand in the international market has affected the export performance of Thailand’s auto production.
As an important auto production and export base in Southeast Asia, Thailand has relied on export markets to drive industry growth in recent years. However, affected by global economic uncertainty and weakening demand in major markets, Thailand’s auto exports are under pressure. In particular, the slowdown in demand in major export markets such as China and the United States has led to a slowdown in Thailand’s automobile exports.
At the same time, consumer confidence in the domestic market in Thailand has not returned to pre-epidemic levels, and automobile sales have failed to meet expectations. Although the Thai government and automakers have introduced some promotional and subsidy measures to stimulate consumption, they have not been able to effectively boost market demand.
Faced with the pressure of production cuts, the Thai automotive industry is taking a series of countermeasures. The Federation of Thai Industries said that despite the overall sluggish market performance, major automakers in the industry are still continuing to optimize their product portfolios and increase investment in electric vehicles and environmentally friendly models to adapt to the green transformation trend of the global automotive industry.
In addition, the Thai government is also actively promoting the digital transformation and technological innovation of its domestic automotive industry, striving to further enhance the global competitiveness of Thailand’s automotive industry by increasing the added value of the industrial chain, promoting intelligent manufacturing and energy conservation and emission reduction.