Mon, October 25, 2021

business

Thai auto industry bracing for impact of Philippines duties


The Thai automotive industry is bracing for impact after the Philippines imposed temporary import duties on cars and pickup trucks to protect its own automotive sector.

Duties on imported passenger cars and pickup trucks worth US$1,500 and $2,300 per vehicle, respectively, have been imposed until August 8 this year, said Pisit Rangsaritwutikul, president of Thailand Automotive Institute.

The Philippines is Thailand’s third-largest export market for cars and second-largest for pickup trucks.

The private sector in the Philippines is worried the new duties will push up the price of vehicles, since its domestic auto industry is still unable to meet local demand.

Thai auto production soared in November last year to 172,455 vehicles, its first rise in 19 months as domestic and export markets recovered from the Covid-19 crisis. The first 11 months of 2020 saw almost 1.3 million vehicles produced in Thailand.

But the second wave of Covid-19 in Europe and Thailand, coupled with political uncertainty in the US, then sparked concern over domestic and export markets for Thai autos. However, signs of recovery in the Australian and Thai markets have spurred hopes that production of vehicles in Thailand this year will be close to the targeted 1.4 million.

Published : January 22, 2021

By : The Nation