Thailand’s automotive industry showed its strength in 2012, manufacturing 2.45 million vehicles. This represented a 68 percent increase from 2011 and saw Thailand elevated to 10th place among car producing countries. However, it should be remembered that following the floods, production nose-dived, with some factories inundated, so it was natural that huge increases in production would be seen.
With the government backed incentive scheme for new car buyers last year, this pushed domestic car sales to 1.43 million vehicles last year, up by 81 percent. Car exports increased by 40 percent to over one million units, a record high making Thailand the world’s seventh-largest car exporter.
With the world economic woes, the Federation of Thai Industries (FTI) forecasts that production will be only marginally improved at 2.5 million vehicles this year. 1.4 million of which is destined for domestic sales. The FTI also expects to see export sales drop by six percent if the strong baht keeps around 29 to the dollar this year.
