Exports of cars soar but domestic sales of pick-ups decline
The Federation of Thai Industries (FTI) has revealed that automobile exports in May grew by 12.25% but noted that the domestic market experienced a decline in sales of pickup trucks and trucks after controls on financing were tightened.
According to Surapong Paisitpattanapong, the FTI's automotive industry club vice president and spokesperson, the number of exported complete built-up (CBU) cars reached 86,358 units in May, a 12.25% increase compared to the same period last year.
Export value amounted to 54.97 billion baht, marking an 18.91% increase attributable to strong sales in major trading partners, including Indonesia (65% growth), Japan (25% growth), France (24% growth), Malaysia (21% growth), the UK (23% growth), and the US (22% growth).
Total CBU vehicle exports for the first five months of 2023 reached 439,990 units, a 17.09% increase compared to the same period last year. The export value amounted to 273.25 billion baht, reflecting a 22.06% increase year-on-year.
Car production also increased, reaching 150,532 units, a 16.48% increase on May 2022. Of these, 89,709 units were produced for export, while 60,823 units were for domestic sales.
Both CBU car exports and domestic sales have increased from the low base of the previous year due to chip shortages caused by the Ukraine conflict and the Covid-19 pandemic in China. This represents a 27.96% increase from April of this year
Car production for the first five months of this year reached a total of 775,955 units, a 6.72% increase compared to the same period last year.
In terms of domestic car sales, 65,088 units were sold, a 0.55% increase from May 2022, and a 9.34% increase from April 2023. However, pickup truck sales decreased by 23.3% due to the strict lending practices of financial institutions. and the introduction of low-priced imported vehicles into the market. It is hoped that the economy will rebound in the second half of the year following the formation of a new government, Surapong said.
The targets set for this year remain unchanged, with a production target of 1.95 million units, including 1.05 million units for export. The domestic sales target, meanwhile, is set at 900,000 units.
In May of this year, the registration of Battery Electric Vehicles (BEV) reached 7,132 units, a 355.14% increase compared to May 2022. In the first five months of this year, the registration of BEVs accumulated to 33,365 units, a 485.15% increase from the same period last year.
Hybrid Electric Vehicles (HEV) saw a new registration of 8,013 units, a 49.44% increase compared to May 2022. In the first five months of this year, the registration of HEVs reached 38,647 units, a 42.65% increase from the same period last year.
Plug-in Hybrid Electric Vehicles (PHEV) had a new registration of 1,025 units, a decrease of 2.94% compared to May 2022. However, in the first five months of this year, the registration of PHEVs accumulated to 5,197 units, a 6.89% increase from the same period last year.
Investors hope the new government will extend the subsidy for electric vehicles that expires by the end of the year. This should help build confidence and stimulate foreign investment.
