Car production in Thailand up 4.7% in July: report

According to the Federation of Thai Industries (FTI), car production in Thailand increased by 4.72% in July from the previous year to 149,709 units, with most of the cars being produced for exports as domestic sales declined.

Domestic car sales in July fell 8.77% from a year earlier to 58,419 units, after a 5.16% decline in June. The drop was mainly due to tightened auto loans and high household debt, said Surapong Paisitpattanapong, a spokesperson for the FTI's automotive industry division.

On the other hand, car exports jumped 30.05% in July from a year earlier, with 108,052 units shipped. That followed a 20.22% rise in June.

Thailand stays determined to promote the sales of electric vehicle (EV) amid the challenges of weak purchasing power and high household debt. According to the recent report of Thailand Automotive Institute (TAI), EV sales are expected to reach a target of 50,000 units this year.

The growth in car production in Thailand is mainly due to strong exports. (Photo: Thailand Board of Investment)

Thailand leads BEV sales in Southeast Asia

Counterpoint’s latest research SEA Passenger Electric Vehicle Model Sales Tracker reports that Southeast Asia’s passenger battery electric vehicle (BEV) sales grew nearly 10 times year-over-year in the first quarter of 2023.

Thailand accounted for over 75% of BEV sales in the region, followed by Indonesia and Vietnam. The research report underlined that Thailand’s efforts to promote EV sales have been successful, and the country has attracted significant foreign direct investment (FDI) in the EV sector.

Meanwhile, Chinese automakers’ market share increased from 38% to nearly 75% in the past year, captured the majority of BEV sales in Southeast Asia.

The research firm predicts that the share of EVs in total vehicle sales in Southeast Asia could reach 6% by the end of 2023.