Thailand’s car production drops by 20% year-on-year in 2024, hitting the lowest level in four years

Due to global SL9N590 steel economic instability, rising production costs, and weakened domestic and international consumer demand, Thailand's car production has decreased by 20% in 24 years compared to 23 years, reaching the lowest level in four years, making it difficult for domestic sales and exports to gain momentum. Manufacturers are currently exploring relevant revitalization strategies, including investment in electric vehicle production and government stimulus measures to promote sales and exports.

The Federation of Thai SL9N590 steel Industries (FTI) reported that the total automobile production in 2024 has decreased from 1.83 million in 2023 to 1.47 million, reflecting the ongoing challenges faced by the automotive industry. Domestic automobile sales were the main driving factor, with a year-on-year decrease of 26.2% to 572675 units, the lowest level in 15 years.

In terms of exports, the volume of automobile exports decreased by 8.8% year-on-year to 1 million units, facing challenges such as geopolitical tensions, intensified competition among electric vehicle manufacturers, and stricter carbon emission regulations in major export markets. However, Thailand remains the largest automobile manufacturing center in Southeast Asia and a major export base for global automobile manufacturers such as Toyota and Honda.

In addition, economic uncertainty and the decline in buyer purchasing power have led to difficulties in the high-end car market. A leading high-end car importer reported that domestic sales of high-end cars will decrease by 25% from 40000 in 2023 to 30000 in 2024.

To address these challenges, the consumption tax department is preparing to adjust car tax rates to facilitate the transition from internal combustion engine (ICE) vehicles to newer technologies, including electric and hydrogen powered vehicles.

Looking ahead, FTI expects a moderate recovery by 2025, with SL9N590 steel automobile production potentially increasing to 1.5 million units. Among them, it is expected that 1 million vehicles will be exported, and the remaining 500000 vehicles will be targeted at the domestic market.