The Automotive Industry Club of the Federation of Thai Industries (FTI) has set an unofficial production target of 2.15 million vehicles for 2015, which is almost the same as last year's target. Most of the finished products will be for export because of lower domestic demand.
Car production failed to reach the target of 2.1 million units last year. Only 1.88 million were assembled because of the lingering effects of the previous elected government's first-car tax-break policy, high household debt, and the political turmoil in the first quarter of 2014.
"Our new unofficial production targets for 2015 that will be introduced to the board in the coming weeks are 950,000 units for domestic consumption and 1.2 million for export," said Surapong Paisitpattanapong, FTI vice chairman and spokesman for its Automotive Industry Club.
"The failure of the economy to recover fully, falling agricultural prices, the high level of household debt, the strictness of commercial banks on granting personal loans, and sluggish public and private investment have all contributed to the slowdown of domestic demand, which has led to a shift in the focus of automobile production this year," he said.
A total of 166,260 automobiles were produced last month, an increase of 2.22 per cent year on year and up by 8.19 per cent from December, when 106,278 units were produced for export (63.92 per cent of the total) and 59,982 units for domestic consumption (36.08 per cent). This represents an increase of 13.81 per cent in automobile production for export and a decrease of 13.4 per cent for vehicles destined for domestic consumption, Surapong said.
Domestic sales of automobiles equalled 59,669 units last month, a decline of 33.3 per cent from December and down 12.9 per cent from January last year.
Nevertheless, 92,440 automobiles worth Bt41.151 billion were exported last month, an increase of 10 per cent in value when compared with January last year, thanks to an increase in exports to Europe, the Americas and Australia.
Vehicle exports to European countries increased by 30 per cent year on year in January. Last year, Europe accounted for 8.5 per cent of the 1.13 million units (worth Bt527.423 billion) that were produced for export last year.
"I was surprised when I saw that exports of automobiles to Europe were doing so well last month despite the termination of Thailand's Generalised System of Preferences privileges at the end of December. I believe it was due to the changes of car models that were being exported to the euro zone along with the increase in the number of eco-cars that were being exported there," Surapong said.
"Nevertheless, exports to the Middle East, which accounted |for 24 per cent of automobile ex-ports last year, are still doing poorly because of geopolitical risks in |that region, while auto exports to Africa have yet to recover from the effects of the Ebola outbreak last year.
The Automotive Industry Club of the Federation of Thai Industries (FTI) has set an unofficial production target of 2.15 million vehicles for 2015, which is almost the same as last year's target. Most of the finished products will be for export because of lower domestic demand.Car production failed to reach the target of 2.1 million units last year. Only 1.88 million were assembled because of the lingering effects of the previous elected government's first-car tax-break policy, high household debt, and the political turmoil in the first quarter of 2014."Our new unofficial production targets for 2015 that will be introduced to the board in the coming weeks are 950,000 units for domestic consumption and 1.2 million for export," said Surapong Paisitpattanapong, FTI vice chairman and spokesman for its Automotive Industry Club."The failure of the economy to recover fully, falling agricultural prices, the high level of household debt, the strictness of commercial banks on granting personal loans, and sluggish public and private investment have all contributed to the slowdown of domestic demand, which has led to a shift in the focus of automobile production this year," he said. A total of 166,260 automobiles were produced last month, an increase of 2.22 per cent year on year and up by 8.19 per cent from December, when 106,278 units were produced for export (63.92 per cent of the total) and 59,982 units for domestic consumption (36.08 per cent). This represents an increase of 13.81 per cent in automobile production for export and a decrease of 13.4 per cent for vehicles destined for domestic consumption, Surapong said.Domestic sales of automobiles equalled 59,669 units last month, a decline of 33.3 per cent from December and down 12.9 per cent from January last year.Nevertheless, 92,440 automobiles worth Bt41.151 billion were exported last month, an increase of 10 per cent in value when compared with January last year, thanks to an increase in exports to Europe, the Americas and Australia.Vehicle exports to European countries increased by 30 per cent year on year in January. Last year, Europe accounted for 8.5 per cent of the 1.13 million units (worth Bt527.423 billion) that were produced for export last year."I was surprised when I saw that exports of automobiles to Europe were doing so well last month despite the termination of Thailand's Generalised System of Preferences privileges at the end of December. I believe it was due to the changes of car models that were being exported to the euro zone along with the increase in the number of eco-cars that were being exported there," Surapong said."Nevertheless, exports to the Middle East, which accounted |for 24 per cent of automobile ex-ports last year, are still doing poorly because of geopolitical risks in |that region, while auto exports to Africa have yet to recover from the effects of the Ebola outbreak last year.
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