Thailand is one of Southeast Asia’s leading auto makers, and the sector has been expanding significantly in recent years.
According to the Federation of Thai Industries (FTI), Thailand’s car manufacturing rose in March by 4.16% from a year earlier to 179,848 units, despite the reduction in the semiconductor shortage. The FTI also stated that in 2022, the number of eco-cars—small, fuel-efficient automobiles that adhere to specific environmental standards—would increase by 8.5% to 543,000 units.
Nearly a third of the overall manufacturing was made up of these vehicles, which were primarily shipped to nations like Indonesia, Malaysia, and the Philippines. As more consumers choose cheaper and more environmentally friendly options, the eco-car market is anticipated to expand.
The rising popularity of electric cars (EVs), which are propelled by batteries or hybrid systems, is another important trend in the Thai automotive sector.
According to the FTI, manufacturing of EVs will increase to 86,000 vehicles in 2022 from 58,000 units in 2021. The government has been promoting the growth of EVs by providing tax breaks, subsidies for infrastructural improvements, and other initiatives. By 2025, the FTI predicted that EV manufacturing will amount to 200,000 units, or 12% of all production.
Another issue that the Thai car sector is dealing with is the global lack of semiconductors, which are crucial parts of contemporary vehicles. The FTI issued a warning that this might have an impact on some models’ production and delivery in 2023.
The Thai auto sector is confident about its prospects and possibilities despite these challenges. As domestic and foreign markets recover from the epidemic, the FTI anticipates that production will increase by 5% to 1.73 million units in 2023.
The FTI is certain that Thailand will continue to be a significant auto center in Southeast Asia and beyond.
