NPLs lead to drop in vehicle sales, production in Thailand
Vehicle manufacturing and sales in Thailand have experienced significant declines this year due to stricter loan approvals and a rise in non-performing loans
The manufacturing and sales of vehicles in Thailand during the first 11 months of this year dropped by 20.14% and 26.69% respectively, year on year, the Automotive Industry Club reported on Tuesday.
The club, which falls under the Federation of Thai Industries (FTI), attributed the decline to a surge in non-performing loans (NPLs) among car buyers in the third quarter.
Surapong Paisitpattanapong, spokesman of the auto club, said a total of 1,364,119 vehicles had been manufactured in Thailand from January to November, marking a 20.14% decline compared to the same period last year. Of these, 117,251 vehicles were produced in November, down 28.23% from the same period last year, Surapong said.
He added that 518,659 vehicles were sold from January to November, marking a decrease of 26.69% compared to last year.
In November, 42,309 vehicles were sold, reflecting a 12.25% increase from October 2024 but a 31.34% decline from November last year.
Surapong attributed the drop in sales to stricter vehicle loan approval processes by financial institutions, driven by the economic slowdown and rising NPLs.
NPLs among vehicle buyers rose 22.8% in the third quarter of this year, compared to the same period last year.
As for exports, Thailand shipped 942,867 vehicles from January to November 2024, a decrease of 8.21% from the same period last year.
In November, exports came in at 89,646 vehicles, a 6.30% rise from October but a 10% decline from November 2023.
