Thailand's auto sector remains bright after AEC: Moody's
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Thailand will remain the dominant carmaker in Asean for the foreseeable future following the establishment of the Asean Economic Community (AEC) in 2015, despite competitive threats from the fast-developing Indian and Chinese car markets, said Moody's In
In a series of Asean reports, the rating agency noted that the biggest risk to Thailand's and Asean'sauto sector is from outside the region. China's car industry is currently building over 24 million vehicles per annum, and India's 700,000 exported vehicles in 2014 came close to Thailand's total 882,000 in exports in the
same year. All major carmakers have entered India to sell locally and also to establish a manufacturing presence to supply their global export markets.
"With the establishment of the AEC this year, Thailand's position as the largest producer of cars in ASEAN is potentially under threat, as other countries, for example Indonesia, with traditionally domestic market focused car assembly operations, seek a larger slice of the regional market," said Alan Greene, a Moody's vice president and senior credit officer.
