The Federation of Thai Industries (FTI) is optimistic about the potential impact on Thailand’s automotive industry from a proposed merger of Nissan and Honda.
Surapong Paisitpatpong, vice chairman and spokesperson of the Automotive Industry Group of the FTI, commented on recent reports suggesting that the two Japanese automakers were considering a merger to enhance their competitiveness in the global electric vehicle market.
“While the specific details of the merger are yet to be announced, it is likely to benefit the Thai automotive industry,” said Surapong. "Both Nissan and Honda have significant operations in Thailand, including manufacturing facilities and research and development centres. A potential merger could lead to increased investment, job creation, and technological advancements in the country."
Surapong also noted that the combined entity could potentially challenge Toyota’s dominance in the global automotive market, particularly in the electric vehicle segment. However, he emphasised that it is too early to speculate on the exact implications for Thailand's automotive industry.
Meanwhile, the FTI has lowered its 2024 vehicle production forecast to 1.5 million units from the earlier estimate of 1.7 million units. This reduction is primarily due to slowdown in domestic demand and export challenges.
Surapong cited factors such as tighter credit conditions, economic uncertainty, and geopolitical tensions as contributing to the downward revision. He expressed concern over the potential impact of the Israeli-Hamas conflict on exports to certain markets, particularly Australia.
Despite these challenges, the FTI remains optimistic about the long-term prospects of the Thai automotive industry. The government's focus on electric vehicle promotion and the country's strong manufacturing base position it well to capitalise on the global shift towards electric mobility.