Car production in Thailand fell by a significant 24.63% in January from a year earlier, reaching 107,103 units due to weak domestic sales and exports, according to the Federation of Thai Industries (FTI). Thailand, Southeast Asia’s largest auto production hub and a key export base for global automakers such as Toyota and Honda, experienced a sharper decline than expected.
Reasons Behind the Production Decline
The steep drop was attributed to weaker domestic car sales, which fell by 12.26% in January due to tightened auto loans linked to high household debt. Exports also plummeted by 28.13%, marking the lowest export volume in 33 months, driven by increased competition from Chinese automakers.
Industry Concerns and Outlook
“I was very shocked. The production numbers are really low,” said Surapong Paisitpattanapong, spokesperson for the FTI’s automotive industry division. The January decline was more severe than the 17.37% drop in December and marked the 18th consecutive month of declining production.
Australia, the Philippines, and Japan were Thailand’s top three car export markets last year. The FTI plans to monitor potential government measures to assist with auto loans and the U.S. policy on auto tariffs. Earlier this month, U.S. President Donald Trump announced plans to impose auto tariffs starting April 2, which could further impact Thailand’s auto exports.
Impact on Thai Automotive Industry
The prolonged decline in production is raising concerns over Thailand’s automotive industry, which plays a crucial role in the country’s economy. The industry is closely watching government interventions and global trade policies that could affect future growth and stability.
