Automotive manufacturing for export slides 40% amid dip in orders

Thailand’s automobile manufacturing for export from January to Could decreased by 40% year-on-year to 72,527 items on account of sluggish buy orders, notably from the European and US markets, says the Federation of Thai Industries (FTI).

In Could, automobile manufacturing for export fell by 23% year-on-year to 13,925 items.

The lower was attributed to the extended semiconductor scarcity and the financial slowdown within the US, European and Asian markets, mentioned Surapong Paisitpatanapong, vice-chairman and spokesman for the FTI’s automotive membership.

“The semiconductor scarcity is a essential issue that impacts the worldwide automotive business whereas the Russia-Ukraine conflict is dealing a blow to the worldwide economic system,” he mentioned.

The FTI is worried the issues might have an effect on its automobile manufacturing goal in 2022. It earlier predicted automobile manufacturing would stand at 1.8 million items, with 1 million produced for export.

“We’re carefully monitoring the semiconductor scarcity and count on this drawback will persist for at the least 1-2 years,” mentioned Mr Surapong.

Automotive exports in Could decreased by 3.2% year-on-year to 76,937 items and fell by 48.7% from April.

In accordance with the FTI, international automakers want to extend the costs of some fashions by round 5-10% this yr due to the rise in uncooked materials costs, particularly semiconductors.

This will likely finally trigger an impression on home automobile gross sales, mentioned Mr Surapong.

In Could, home automobile gross sales rose by 15.1% year-on-year to 64,735 items and elevated by 2.06% from April, due to the federal government’s easing of lockdown measures to comprise the unfold of Covid-19 in addition to the financial stimulus packages to spice up shopper spending.

“However we’re frightened over the hovering retail oil costs, following the worldwide oil value surge,” mentioned Mr Surapong, including inflation, together with greater family debt, would dampen shopper buying energy.

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