Auto production and sales in Thailand experienced significant declines in September 2024, with all sectors, including exports, showing downturns.
Stricter loan approvals and high household debt levels were key factors contributing to the industry’s challenges. Total auto production for the month stood at 122,277 units, a 25.48% drop compared to September 2023, while production for the first nine months of the year fell by 18.61%, reaching 1,128,026 units. Export production saw a 15.78% year-on-year decrease, with domestic production dropping by 42.31%.
Domestic car sales in September were the lowest in 53 months, totaling 39,048 units, a 37.11% year-on-year decline. The drop in sales was driven by tighter lending conditions due to high household debt, with non-performing auto loans reaching 259.33 billion baht. Modest GDP growth, projected at 2.7-2.8% for 2024, also contributed to reduced consumer spending and vehicle purchases.
Exports of finished vehicles also fell, with 80,254 units shipped in September, a 17.67% year-on-year decrease. Geopolitical tensions in the Middle East disrupted shipping routes, further weakening demand in key markets. Electric vehicle sales also declined, with battery electric vehicle registrations falling by 25.81% in September, although cumulative registrations for the year showed an 11.67% increase.
A meeting of the automotive industry group is scheduled for November to reassess production and sales targets for the year, with expected downward revisions. Concerns remain over high household debt and its impact on the economic recovery, despite hopes for increased investments driven by the Board of Investment.
Source: NNT / Photo Credit: Link
