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Thai Auto Production Up 4% in March
While the shortage of microchips alleviated, Thailand’s car manufacturing increased in March by 4.16% from a year earlier to 179,848 units, according to the Federation of Thai Industries (FTI).
The FTI also reported that the production of eco-cars, which are small and fuel-efficient vehicles that meet certain environmental standards, rose by 8.5% to 543,000 units in 2022.
These cars accounted for nearly a third of the total production and were mainly exported to countries such as Indonesia, Malaysia, and the Philippines. The eco-car segment is expected to continue growing as more consumers opt for greener and cheaper alternatives.
Another notable trend in the Thai auto industry is the increasing adoption of electric vehicles (EVs), which are powered by batteries or hybrid systems.
The FTI estimated that the production of EVs reached 86,000 units in 2022, up from 58,000 units in 2021. The government has been supporting the development of EVs by offering tax incentives, infrastructure development, and research and development funding. The FTI projected that the production of EVs will reach 200,000 units by 2025, accounting for 12% of the total production.
The Thai auto industry is facing some challenges as well, such as the global shortage of semiconductors, which are essential components for modern vehicles. The FTI warned that this could affect the production and delivery of some models in 2023.
Despite these difficulties, the Thai auto industry remains optimistic about its prospects and potential. The FTI expects that the production will grow by 5% to 1.73 million units in 2023, as domestic and export markets recover from the pandemic.
The FTI believes that Thailand can maintain its position as a leading auto hub in Southeast Asia and beyond.
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