Thailand's Auto Industry Gears Up for Slow Recovery Amid Prolonged Slump

Thailand's auto industry is struggling to recover from a prolonged slump, despite government support and positive economic indicators. Domestic car production fell for 20 months, but executive optimism suggests a gradual improvement. Key challenges include high household debt and limited credit access.

Thailand's automotive sector is navigating turbulent waters, with hopes for recovery clouded by a prolonged downturn despite governmental interventions, according to industry insiders attending the country's principal motor show.

The nation, recognized as a significant automotive manufacturing hub in Southeast Asia, is home to prominent car manufacturers such as Toyota, Honda, and emerging Chinese electric vehicle brands like BYD. Valued at approximately $50 billion, the auto industry has seen better days, particularly as domestic car production has plummeted for 20 continuous months.

The Bangkok International Motor Show, historically a generator of substantial car orders, aims to spark revival in 2024. While domestic sales dropped slightly in February, slower declines from January hint at potential recovery. The sector's rebound may hinge on local and international policy shifts and overcoming domestic financial challenges.

(With inputs from agencies.)