Record-low vehicle manufacturing in April, reported by FTI's Auto Club - a 44-month low.
Thai vehicle manufacturing hits 44-month low amid economic slump, but electric vehicle production soars, revealing a burgeoning green sector in the country. The Automotive Industry Club of the Federation of Thai Industries (FTI) reported a decline in April's vehicle production, with a 19.75% decrease from March and a 0.40% decrease compared to April 2024.
In contrast, electric vehicles maderemarkable growth in April, with significant rises in SUVs, battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles, increasing by 639.75%, 319.11%, and 35.31% respectively. The growth was achieved despite a 33.60% drop in internal combustion engine (ICE) vehicles, primarily due to a 36.93% decrease in exports of ICE vehicles during April.
Pickup truck production fell by 3.06%, and domestic pickup sales dropped by 22.25%. Over 37,165 vehicles were manufactured for domestic sales in April, marking an 11.72% decline from the previous year. Exports slipped to 67,085 units, down 6.73% compared to April last year. From January to April, exports reached 303,881 units, a 12.07% year-on-year decrease.
The decline in production was mainly attributed to the drop in ICE vehicles, but the surge in electric vehicle production offers a glimmer of hope for the Thai automotive sector. The Thai government has introduced a range of incentives to boost electric vehicle adoption, such as duty reduction privileges for imported CBU EVs, an expanded trade-in scheme, and strategic tax reductions to make EVs more affordable. The government's ambitious target of making electric vehicles account for 30% of domestic automobile production by 2030 is driving the focus on increasing EV production.
In April, Thailand marked its first month exporting BEVs, with 660 units sent abroad. Despite the overall decrease in vehicle exports, the move signals a push towards regional EV dominance that could help mitigate the impact of declining overall vehicle production. The Auto Club believes that pickup sales will improve in the second half of the year, following the government's plan to guarantee mortgage loans for pickup buyers, which may bolster the struggling pickup sector.
- The surge in electric vehicle production in the Thai automotive sector, contrary to the decline in traditional vehicles, indicates a shift towards finance in green technology, offering a promising future in the economy.
- The Thai government's incentives, including duty reduction privileges for imported electric vehicles, are strategic moves to enhance the finance sector by increasing adoption of electric vehicles and boosting the economy.
- Despite the current economic slump affecting vehicle manufacturing, the first-ever export of battery electric vehicles (BEVs) from Thailand in April signifies a step forward in the country's ambition to dominate the regional electric vehicle market, potentially compensating for the decreasing overall vehicle production.
