Thailand’s next problem: Car output drops
One of the few Thai industry sectors that so far supported the country’s already moderate 2013 GDP growth – besides tourism -, the car industry, has begun facing problems due to weakening domestic purchasing power.
The country’s car output is unlikely to meet the 2013 target of 2.55 million vehicles due mainly to falling domestic sales, says the auto industry club of the Federation of Thai Industries (FTI). The federation on November 23 said the country’s car production stood at 2.115 million vehicles in the first 10 months, up by only 7.07 per cent year-on-year, the Bangkok Post reported.
For October, the club said that car output totalled 185,117 vehicles, down by 26.6 per cent year-on-year, with domestic sales falling by 37.7 per cent to 88,989 vehicles. It forecast combined output for the final two months will stand at 390,686 vehicles, meaning 12-month production will total only 2.51 million vehicles.
For the first 10 months, Thailand reported domestic car sales of 1,123,268 vehicles, down by 1.8 per cent year-on-year, with exports for the period rising by 12.4 per cent to 944,205 vehicles worth 427 billion baht, up by 6.01 per cent.
The forecast for 2014 stands between 2.55 and 2.6 million vehicles, with exports accounting for 1.2 million and domestic sales for 1.35 to 1.4 million. Unfavourable political conditions and expected delays in government mega projects will put pressure on the car industry, the FTI said.
One of the few Thai industry sectors that so far supported the country's already moderate 2013 GDP growth - besides tourism -, the car industry, has begun facing problems due to weakening domestic purchasing power. The country's car output is unlikely to meet the 2013 target of 2.55 million vehicles due mainly to falling domestic sales, says the auto industry club of the Federation of Thai Industries (FTI). The federation on November 23 said the country's car production stood at 2.115 million vehicles in the first 10 months, up by only 7.07 per cent year-on-year, the Bangkok Post reported. For...
One of the few Thai industry sectors that so far supported the country’s already moderate 2013 GDP growth – besides tourism -, the car industry, has begun facing problems due to weakening domestic purchasing power.
The country’s car output is unlikely to meet the 2013 target of 2.55 million vehicles due mainly to falling domestic sales, says the auto industry club of the Federation of Thai Industries (FTI). The federation on November 23 said the country’s car production stood at 2.115 million vehicles in the first 10 months, up by only 7.07 per cent year-on-year, the Bangkok Post reported.
For October, the club said that car output totalled 185,117 vehicles, down by 26.6 per cent year-on-year, with domestic sales falling by 37.7 per cent to 88,989 vehicles. It forecast combined output for the final two months will stand at 390,686 vehicles, meaning 12-month production will total only 2.51 million vehicles.
For the first 10 months, Thailand reported domestic car sales of 1,123,268 vehicles, down by 1.8 per cent year-on-year, with exports for the period rising by 12.4 per cent to 944,205 vehicles worth 427 billion baht, up by 6.01 per cent.
The forecast for 2014 stands between 2.55 and 2.6 million vehicles, with exports accounting for 1.2 million and domestic sales for 1.35 to 1.4 million. Unfavourable political conditions and expected delays in government mega projects will put pressure on the car industry, the FTI said.
