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Thailand: Car makers upbeat on annual export target
Car exports in October grew by 14.3% year-on-year — the highest in seven months — to 81,577 units, impressing automakers with a chance to see exports rise to 870,000 units beyond the 2021 target, says the Federation of Thai Industries (FTI).
However, domestic car sales in the same month decreased by 13% year-on-year to 64,462 units as consumers’ purchasing power remained weak.
Surapong Paisitpatanapong, vice-chairman and spokesman for the FTI’s automotive club, said car export growth was a key factor driving car production which increased by 28% year-on-year to 759,058 units between January and October.
He attributed the increase to lockdown easing in many countries and a higher supply of semiconductors.
“Car export value in the first 10 months increased by 40.7% year-on-year to around 663 billion baht,” said Mr Surapong.
The club earlier predicted car production in Thailand would reach 1.55-1.6 million units, with 800,000-850,000 to be exported.
Under the current conditions, it is confident the export volume can increase to 870,000 units, but the actual numbers will depend on Covid-19 outbreaks and a shortage of semiconductors, which earlier affected car companies.
“We have to wait and see whether market situations during November and December will help us achieve the production target,” said Mr Surapong.
In October, car manufacturing increased by 3.27% year-on-year to 154,038 units, according to the club.
From January to October, the number of new cars increased by 22.89% year-on-year to 1,365,984 units, with 42% of the total produced for the domestic market.
Though domestic car sales in October saw a 13% drop, the volume increased by 13.3% from September, thanks to factors including lockdown easing and the government’s stimulus packages.
Domestic car sales in the first 10 months dropped slightly by 2.1% year-on-year to 596,393 units.
The club is positive about car sales in the country during the rest of the year as the Covid-19 situation is getting better, with the spread of the virus brought under control.
Source: https://www.bangkokpost.com/business/2217983/car-makers-upbeat-on-annual-export-target