Thailand’s automotive industry is under pressure as new car sales remain uncertain due to an uneven economic recovery, the Bank of Thailand reported. According to the Monetary Policy Committee’s Q4 2024 report, pickup sales recovery lags behind passenger cars due to weaker purchasing power among prospective buyers, reads a Bangkok Post report.
Passenger car sales are projected to improve in 2024, supported by robust demand and rising interest in hybrid vehicles. However, structural issues, an ageing population, and shifting preferences among younger consumers—favoring public transport and ride-hailing services—pose medium-term challenges.
Thailand’s automotive production shrank nearly 20% year-on-year during the first 10 months of 2024, driven by a 52% decline in export production and a 5% drop domestically. The export-to-domestic production ratio shifted to 31:69, a significant change from previous years.
The industry must adapt by focusing on electric vehicle production to remain competitive. The Bank of Thailand emphasizes the need for flexible policies to tackle uncertainties, including potential shifts in U.S. economic measures.
Bd-pratidin English/ Jisan
