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Thailand's total car manufacturing this year is likely to fall short of the industry's initial target of 1.5 million units due to the impact of Washington's tariff policy, says the Federation of Thai Industries (FTI). The FTI's Automotive Industry Club plans to downgrade the target in the middle of this year as it monitors the impact on car exports for a few months.
"We expect car production to decrease to less than 1.4 million units this year," said Surapong Paisitpatanapong, vice-chairman of the FTI and the club's spokesman. In 2024, Thailand's car production tallied 1.
46 million units, also short of its target of 1.5 million units. The club said earlier this year it maintained the 1.
5-million target this year, comprising 1 million units for export and 500,000 units for the domestic market. US President Donald Trump's announcement of a 25% tariff on foreign-made automobiles exported to the US took effect on April 2, while auto parts exporters can expect new duties no later than May 3, according to media reports. Mr Surapong is also worried about the impact of Trump's steep reciprocal tariff initially set to take effect on April 9, then postponed for 90 days for countries that did not retaliate against the US to allow for trade negotiations.
"We have to see what will happen during and after the 90-day period," he said. "Washington's tariff policy is a major challenge to various industries." According to the club, total car manufacturing in Thailand decreased by 6% year-on-year in March to 129,909 units, with production for export falling by 9.
3% due to changes in passenger car models, but manufacturing for domestic sales increasing by 0.36%, driven by more production of electric vehicles. From January to March, total car production tallied 352,499 units, a year-on-year decrease of 14.
8%. Domestic car sales, which have been affected by high rejection rates for auto loans amid elevated household debt, dipped slightly by 0.54% year-on-year to 55,798 units in March.
During the first three months of this year, car sales in the country fell by 6.45% year-on-year to 153,193 units. Car exports decreased by 14.
9% year-on-year to 80,914 units in March. During the first quarter, car exports declined by 18.6% year-on-year to 220,139 units.
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