Auto manufacturers likely to raise prices next year due to rising costs: FTI
The Federation of Thai Industries (FTI) on Tuesday predicted that auto manufacturers would raise the prices of vehicles next year because of rising costs.
FTI vice chairman and spokesman for the FTI's Auto Industry Group Surapong Paisit-Pattanapong said rising labour and electricity costs would leave auto-makers with no choice but to raise their prices accordingly.
Surapong added, however, that the increase in auto retail prices would have no impact on the economic recovery.
He said Thailand’s economy would continue to recover because of foreign tourist arrivals, which would double to 20 or 21 million people next year from 10 million this year.
He said the FTI was confident of economic growth because the government would further implement economic stimulus measures and would continue programmes to guarantee crop prices for farmers. These measures would improve money circulation in the economic system, he added.
His group predicted that about 1.85 million to 1.95 million vehicles would be made in Thailand next year.
The Auto Industry Group also believes that the sale of battery electric vehicles (BEVs) would expand from about 10,000 units of BEVs to about 25,000-35,000 units next year, Surapong said.
His group was confident because of government initiatives to promote the use of BEVs with subsidies of 150,000 baht and reduction of import tariffs from 8% to 2%, prompting several auto manufacturers to select Thailand as their BEV manufacturing base.
In addition, Thais have also become more environmentally aware and want to play a part in protecting the environment, Surapong said.
