In 2024, domestic sales fell 26.2% annually to its lowest level in 15 years, at 572,675 units, due to weaker demand as banks have tightened auto loans amid high household debt, Surapong said.Thailand's car production in 2024 dropped about 20% from the previous year to record the lowest output in four years, owing to weaker domestic sales and exports, although production is expected to rise 2% this year, an industry group said on Tuesday.
Thailand is Southeast Asia's biggest autos production centre and an export base for some of the world's top carmakers, including Toyota and Honda.
In 2024, car output dropped to 1.47 million units from 1.83 million in 2023. Production on a year-on-year basis contracted for the 17th successive month in December, the Federation of Thai Industries said.
This year, car production is projected at 1.5 million units, of which 1 million will be for export and the rest for the local market, the federation said. Car output will be supported by higher production of electric vehicles required in a state incentives scheme, and an expected rise in sales following government stimulus measures, said Surapong Paisitpattanapong, spokesperson for the FTI's automotive industry division.
In 2024, domestic sales fell 26.2% annually to its lowest level in 15 years, at 572,675 units, due to weaker demand as banks have tightened auto loans amid high household debt, Surapong said.
"Car loan rejection rates have jumped to 70%," he told a press conference.
Last year, car exports dropped 8.8% annually to 1 million units, due to geopolitical issues, competition from EVs and strict carbon emission measures in several countries, he said.
