However, the biggest risk to Thailand's—and ASEAN's—auto sector is from outside the region, says Moody's. China's car industry is currently building over 24 million vehicles per annum, and India's 700,000 exported vehicles in 2014 came close to Thailand's total 882,000 in exports in the same year.
Moody's also notes that all major carmakers have entered India to sell locally and also to establish a manufacturing presence to supply their global export markets.
Elsewhere in the region, Moody's notes that lower fuel costs will keep electricity tariffs in Malaysia low over the next 12 to 18 months, given the rating agency's outlook for weaker thermal coal and CRUDE OIL PRICES.