Thailand expected to produce over 2 million vehicles by 2024

Thailand is predicted to increase its production output to more than 2 million vehicles by 2024, according to one of the country’s private sector trade groups. A report by Bangkok Post quoted the Federation of Thai Industries (FTI) as saying that this is due to the current global economic recovery following the COVID-19 pandemic. 

Car production in Thailand is seen to be on the upswing as COVID-19 restrictions are eased

According to Surapong Paisitpatanapong, vice-chairman and spokesperson for FTI’s automotive club, this forecast hinges on the government’s electric vehicle (EV) incentive package which cuts down customs duties for battery electric vehicles by up to 40 percent. “Though car importers will benefit from the package, the government eventually wants to have more investments in EV development within the country,” he said. 

As part of an ambitious plan to make Thailand a regional EV production hub, the country’s National EV Policy Committee announced in March 2021 its goal of having EVs make up 50 percent of locally made vehicles by 2030. 

“We will see more clearly any progress in the EV market in the second half this year, driven by the response to incentives for both carmakers and buyers,” Surapong added. 

Pickups like the Ford Ranger have contributed to Thailand's reputation as ASEAN's automotive hub

The FTI sees Thailand’s automotive industry as gaining back the ground it lost when lockdown measures were implemented to curb the spread of COVID-19, resulting in production delays. In 2018, the country produced 2,167,694 vehicles, exporting 1,142,733 of these to overseas markets. 

A number of vehicles sold by mainstream carmakers in the Philippines are sourced from Thailand, including the Montero Sport midsize SUV and Strada midsize pickup from Mitsubishi, the D-Max midsize pickup by Isuzu, and the Almera subcompact sold by Nissan.         

Thailand has recently adopted incentives for manufacturing electric vehicles [Image: Nikkei Asia]

Despite the challenges brought by the pandemic, Thailand managed to produce 1.68 million cars in 2021, an increase of 18.1 percent compared to 2020. This reportedly exceeded FTI’s original target of 1.6 million units. For 2022, FTI expects 1.8 million vehicles to be produced in the country, with up to 950,000 of those for export.   

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