Thailand’s vehicle production, sales plummet over 20% in August

The manufacturing and sales of vehicles in Thailand fell by more than 20% in August compared to the same period last year, stats from the Federation of Thai Industries (FTI) show.

Surapong Phaisitpattanapong, advisor and spokesman of FTI’s automobile club, said 119,680 vehicles were produced in August, marking a year-on-year drop of 20.56% in August and 4.12% decline from the previous month.

He said from January to August, the total number of vehicles manufactured reached 1,005,749, representing a year-on-year
drop of 17.69%. The slump was primarily due to a reduction in vehicles made for the domestic market, with only 36,892 units manufactured, down 40.49% year on year.

In contrast, 82,788 units were produced for export, down 6.62% year on year.

Meanwhile, only 45,190 vehicles were sold locally in August, marking a 24.98% drop year on year and a 2.60% fall from July this year.

Surapong put the slump down to banks and financial firms tightening their criteria for approving car loans. He noted that non-performing loans have skyrocketed to some 254.48 billion baht as of the end of the second quarter, up 29.7% year on year.

However, despite these challenges, Surapong expressed hope that domestic sales would improve in the last quarter, as citizens receive the 10,000-baht handout. He also said the economy will benefit from government spending from the 2025 fiscal budget starting from October.

In August, Thailand exported 86,066 vehicles, up 3.04% from July but down 1.70% from August last year, Surapong added.

Also, 8,804 battery electric vehicles were registered in August, down 3% year on year. From January to August, 69,047 BEV vehicles were registered, up 17.34% from the same period of last year.