Thailand auto production is likely to be slashed by half to reach around 1mn output in 2020 amid COVID-19 situation which has exacerbated the auto sector in the country, according to the Federation of Thai Industries (FTI), cited by local media.
In April, Thailand produced 24,711 car units, down by 83pc from the year prior and down by 83pc from March. The country has hit an all-time low production level in 30 years. April car sales were around 11,000 units, a drop of 85pc from the prior year month.
Thailand has an annual production capacity of 2mn vehicles but the federation anticipates that the auto industry is unlikely to touch even 1mn unit threshold in 2020, down around 50pc compared to a year ago. January to April production fell by 30pc to 267,617 units from the prior year period. Domestic car sales have been falling straight for 11 months. The COVID-19 has worsened the outlook for Thailand’s auto industry. FTI believes that if COVID-19 situation does not stabilise by June, the auto sector could be impacted severely as global economic growth would lag and so would purchasing power.
The industry body has a noteworthy prominence in South East Asian markets as Thailand is one of the largest car producing destination for global auto manufacturers. Due to strict COVID-19 lockdown, several car manufacturers had shuttered operation in the country. Ford Thailand resumed production on May 18 amid strict COVID-19 measures.