Thailand auto production is forecast to fall this year, a Federation of Thai Industries’ (FTI) automotive industry club spokesman has said.
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Surapong Phaisitpattanapong said that 1.2m vehicles would be manufactured – a 15% drop from an expected 1.4m in 2008.
FTI believes recovery from the current slump will take two years and would will result in further production suspensions and layoffs this year, Surapong said.
“Contracts with sub-contractors will not be renewed, overtime will be cut and we’ll see voluntary retirement for employees.”
Toyota and Isuzu would be most affected as their production is most significant. Honda, which makes only passenger cars locally, is seen doing better.
Thai exports are split between Asia (30%), Oceania (also 30), the Middle East (15-20%) and Europe (10%), with Latin America and Africa accounting for the rest, according to CSM Worldwide data.
Thail-built pickup truck sales have dropped over 30% in Europe and over 15% in Australia though Middle East and Latin America growth could offset this. An export decline of at least 15% is still expected this year.
Thailand’s automakers depends on exports for more than 50% of output.
