Thailand’s auto industry hit the breaks in 2014 as exports fell by 1.25% and domestic sales plunged 34%, but sales are expected to pick up in 2015.
The Federation of Thai Industries (FTI) has reported that Thailand produced 1.88 million cars in 2014, lower than a target of 2.1 million cars.
Vice President and Spokesman of the FTI’s auto industry group Suraphong Phaisitphatthanaphong said the number of cars manufactured in Thailand last year stood at 1.88 million units, decreasing from the same period of 2013 by 23.49% and the target of 2.1 million units.
A 33.7% drop in car sales in the country was the main cause of the lower production in 2014. Other factors affecting Thailand’s car production last year included an economic slowdown, delayed budget disbursement of the government and produce price drop, said the vice president.
Three years ago, passenger-car sales boasted a remarkable growth. This was largely due to Thailand’s first-car-buyer programme that offered excise rebates of up to 100,000 baht per vehicle. Some 1.4 million vehicles were sold in 2012.
But sales quickly dropped in 2013 to 1.33 million vehicles. In 2014, political uncertainty under the military-led government and banks’ unwillingness to approve car loan applications resulted in a major slump in the domestic market.