Thai vehicle exports to India continue to grow
The Commerce Ministry has revealed that Thailand's export of vehicles has surged since penetrating the Indian market and urged exporters to highlight the vehicles’ strengths to further expand their market share in the future.
According to Buntee Parnichprapai, Secretary to the Commerce Minister, the value of automobile sales in India in June grew by 10% compared to the same period in the previous year.
Three-wheeled vehicles topped the list at 75%, tractors at 41%, motorcycles at 7%, personal passenger vehicles at 5%, and commercial vehicles at 0.5%. India is unable to produce sufficient automotive components to meet domestic demand.
The Indian automobile market is growing, and Thailand is one of the most consistent exporters of vehicles, benefiting from tax incentives under the Thailand-India FTA and the ASEAN-India FTA, Buntee said.
Thai vehicle component exporters should establish product and service strengths that cater to market demands, potentially collaborating with importers to increase market share in India's future automotive market and creating opportunities for continued financial gain, he added.
In this context, the International Monetary Fund projects that India's growth rate will be 6.1% this year and 6.8% in 2024.
Last year, India imported vehicle components worth over US$5.39 billion, an increase of 9.98%. From January to May this year, imports increased by 19.93%.
India imports vehicles from China, South Korea, Germany, Japan, the US, Thailand, Singapore, the Czech Republic, Italy, and Sweden. According to the United Nations, India surpassed China as the most populous country earlier this year.
