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Image source: Bangkok Post. |
According to the Bangkok Post, the Federation of Thai Industries (FTI) has proposed measures to improve the automotive market to the government. This move aims to rescue the country’s automotive industry as sales plunge.
Surapong Paisitpattanapong, FTI Vice Chairman and spokesperson for the federation’s Automotive Industry Club, stated that the market has witnessed a significant decline in sales for two consecutive years.
In January, Thailand’s automotive production volume dropped by 24.6% year-on-year to 107,103 units, as reported by FTI. The pickup truck segment saw a steep fall, forcing manufacturers to cut production by over 200,000 units. This has had a significant impact on workers in automotive factories and component manufacturing businesses.
Apart from fierce competition from affordable Chinese models, financial loan pressures have also dampened domestic consumer demand. “The previous government planned to implement new measures within four months, but we believe that is too long,” said Surapong.
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Honda factory in Thailand. Image source: Kyodo News. |
To balance their finances, many automotive manufacturers have reduced their factory workers’ hours to 3-4 days a week, with a corresponding 25% pay cut.
Not only have domestic sales slumped, but export volumes have also failed to reach the heights of 2018 due to concerns over potential new import taxes from President Donald Trump.
The automotive industry was once a flagship sector for the country, contributing up to 30% of Thailand’s GDP. The sector also employed approximately 16% of the country’s total workforce. Therefore, the market’s continuous decline not only affects the industry but also has broader economic implications for the nation.
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