Vehicle production in Thailand will rise 3% to 1.9m units in 2024 after falling 2% to 1.84m in 2023, according to the latest forecasts by the Federation of Thai Industries (FTI).

FTI spokesman Surapong Paisitpattanapong said the forecast assumed an upturn in domestic demand after sales fell 9% to 775,780 units in 2023 while exports were also expected to rise with demand in ASEAN, US and Europe continuing to increase despite growing geo-political concerns around the globe.

The federation also assumed the country’s economy would expand 3.5% this year, helped by government economic stimulus.

Sales of battery electric vehicles (BEVs) and hybrids were forecast to grow 13% to 190,000 units, driven by BEV imports mainly from China and as vehicle manufacturers localise production.

The government reduced its BEV purchase subsidies at the beginning of the year following a sevenfold surge to 73,568 units last year. BEV imports also still enjoy reduced import duties and excise taxes, as the government wants to establish a significant market and encourage the development of charging networks.

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By GlobalData