Car production in Thailand declined by 15.75% in December 2023, marking the fifth consecutive monthly decline. Pickup truck output decline due to bank loan tightening.
Decrease in Car Production
Car production in Thailand saw a decrease of 15.75% in December 2023 compared to the previous year, marking the fifth consecutive month of decline. This downward trend has been attributed to a significant drop in output of pickup trucks, which has been a key factor in the declining car production in the country. The overall decline in car production in 2023 amounted to 2.22%, with factors such as banks tightening loans for pickup trucks being cited as contributing factors.
Impact on Car Sales
The decrease in car production has also had an impact on car sales, with a substantial drop of 17.48% experienced in December compared to the previous year. The decline in both production and sales has been primarily attributed to the decrease in the production of pickup trucks, which are a key vehicle in Thailand’s automotive industry. This decrease in output has been linked to banks tightening loans for pickup trucks.
Thailand’s Automotive Industry
Thailand, known as Southeast Asia’s largest autos production center and an export base for major carmakers like Toyota and Honda, produced 1.84 million cars in 2023, reflecting a 2.22% decline from the previous year. This decline in production and sales has raised concerns about the future of the automotive industry in the country.