InfoQuest (July 25, 2023) -- Mr. Surapong Paisitpatanapong, Vice Chairman and Spokesman of the Automotive Industry Club of the Federation of Thai Industries, announced that the Federation of Thai Industries has lowered the production target of fuel vehicles to 1.9 million units in 2023, or a decrease of 2.56% from the original target of 1.95 million units, consisting of 1.05 million units for export and 850,000 units for domestic sales, or a decrease of 5.56% from the original target of 900,000 units. The specific reasons are as follows:
1. Electric vehicles. Electric vehicles have taken more than 5% of the market share from fuel vehicles. Electric vehicles are imported vehicles, not produced in Thailand, so the production target is lowered to allow for the sale of these 5% of vehicles in Thailand.
2. Financial institutions are very strict in terms of household debt (up to 90.6% of GDP) caused by car loans, especially for pickup trucks and commercial vehicles.
3. The continuous decline in exports of other products for several months has caused many industries to shut down or reduce working hours, resulting in reduced income and purchasing power for workers.
4. In a period of rising interest rates and living costs, debtors and people have to pay more money, so they are more cautious in spending, which leads to a decline in purchasing power and a contraction of activities in many industries, such as construction and convenience stores.
Mr. Surapong said that in the last six months of this year, the production target may be adjusted again if more low-cost electric vehicles from China enter the Thai market.
Source: InfoQuest, by Papassorn Ongpichetmetha/Ratchada Kongkhuntie, translated by Xinhua Silk Road
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