BOT, FTI discuss contraction in auto production
Representatives of auto industries and supply chain providers sit down with Bank of Thailand executives to discuss fall in production levels
The Bank of Thailand (BOT) on Monday (June 17) invited entrepreneurs and associations in the automotive and related industries to exchange views on business situations and trends, the central bank wrote on its Facebook wall on Tuesday.
The discussion focused on tackling current challenges in the automotive industry, notably the 17% contraction in manufacturing output in the first four months of 2024, compared to the previous year, the post said.
The Federation of Thai Industries (FTI) reported that from January to April, Thailand produced 518,790 units of vehicles, a 17.05% drop year on year.
345,608 vehicles were earmarked for export, accounting for 66.62% of total production, which also a drop of 2.93% year on year. Vehicles for the domestic market, meanwhile, were 173,182 units, a 35.71% drop year on year.
The FTI said the production is in line with decreasing vehicle sales, at 23.9% drop year on year, as a result of the sluggish economy and high household debts. It is also in line with the Manufacturing Production Index, which has been slumping for several consecutive months.
Yuphin Boonsirichan, chairwoman of the FTI’s Automotive Industry Club, said the discussion on Monday focused on the general situation of the industry, as the central bank was concerned about the businesses of automakers as well as supply chain providers.
“Manufacturers and related associations have exchanged their opinions with the central bank, which has promised to monitor the situation closely,” she said.
“The auto sales are down due to the current economic situation, which has also prompted banks to employ stricter criteria for auto loans. However, none of these factors are of serious concern.”
