By Satawasin Staporncharnchai
BANGKOK (Reuters) – Domestic car sales in Thailand rose at a slower pace in June due to a low base but are on track to meet this year’s target on increased tourism and activity after an easing of pandemic curbs, the Federation of Thai Industries (FTI) said on Monday.
Car exports, however, are expected at 900,000 units, short of the 1 million target, squeezed by the Ukraine war and a shortage of auto parts and semiconductors, the FTI said.
Thailand is a regional vehicle production and export base for the world’s top carmakers, including Toyota and Honda. The industry accounts for about 10% of Southeast Asia’s second-largest economy and its manufacturing jobs.
Another concern is a car import ban by neighbouring Myanmar, where Thailand typically exports thousands of cars annually, Surapong Paisitpattanapong, a spokesperson for FTI’s automotive industry division, told a news conference.
In June, domestic sales rose 4.58% from a year earlier after May’s 15.71% rise, while annual car exports dropped 11% last month.
“Domestic car sales are still good, but car exports have yet to improve,” Surapong said.
Local car sales are expected to rise 12% to 850,000 units this year, the top end of a forecast range, he said, adding that included 50,000 imported cars.
Separately, the Thai unit of Toyota Motor forecast its car sales in Thailand to rise 21% to 290,000 units this year, or a 33% market share, the company said in a statement https://www.toyota.co.th/en/news/oODvVKlR5NEjgx3Z on Monday.
(Writing by Orathai Sriring; Editing by Martin Petty)
