Thailand: car production expected to increase after 2014 fall image

The Federation of Thai Industries announced that the country’s car production is expected to show a recovery in 2015, increasing the total output by a forecasted 17 percent after a 23.5 percent slump recorded last year.

The country’s economy is also expected to settle after serious political unrest was ended last May through a coup d’etat. Surapong Paisitpattanapong, spokesman of the Federation of Thai Industries’ (FTI) Auto Industry Club, said for Reuters that output is predicted to rise to 2.2 million units in 2015, from around 1.88 million last year. Thailand is one of the region’s vehicle production and export hub for numerous global automakers. Surapong added that official forecasts would be reviewed and presented later next month and so far the prediction for overall internal car deliveries is of 950,000 to 1 million units this year, surging from 2014’s tally of around 882,000 vehicles.

Toyota Motor Corp’s Thai division forecasted overall sales in Thailand rising only 4.3% this year even as the new military government is mulling an economy recovery after domestic consumption has been lowered by record-high household debt levels and shaky consumer confidence. According to an FTI statement domestic auto deliveries last month fell 21.4 percent and overall tumbled 33.7 percent in 2014, curbed by the crumbling Thai economy and the lack of government investment. After a government first-car subsidy scheme that brought sales jumps of 81 percent ceased in 2012 the car sales dropped on an yearly basis since May 2013.

Via Reuters