BANGKOK- Car production in Thailand rose 2.75 percent in December from a year earlier to 158,606 units, after a 15 percent rise in the previous month, the Federation of Thai Industries (FTI) said on Tuesday.
In 2022, car production increased 11.73 percent to 1.88 million vehicles, Surapong Paisitpattanapong, a spokesperson for FTI’s automotive industry division, told a news conference.
In December, car exports rose 10.17 percent from a year earlier to 111,605 vehicles, he said.
However, domestic car sales dropped 9.02 percent from a year earlier to 82,799 units due to a lack of semiconductors in some car models and flooding in parts of the country, he said.
In 2022, domestic car sales increased 11.89 percent, while exports increased 4.28 percent, Surapong said.
Thailand is a regional vehicle production and export base for some of the world’s top car makers, including Toyota and Honda. The industry accounts for about 10 percent of Southeast Asia’s second-largest economy and its manufacturing jobs.
Thailand’s exports contracted more than expected in December and only modest growth was expected for 2023 as the global economy slowed and a strong baht currency hurt trade competitiveness, the commerce ministry said on Tuesday.
Exports, a key driver of growth, dropped 14.6 percent in December from a year earlier, worse than a forecast 11.5 percent fall in a Reuters poll.
In 2022, Thailand’s exports value hit a record high of $287 billion from 5.5 percent growth, beating the ministry’s target of a 4 percent rise. For 2023, the ministry is targeting growth of just 1 percent to 2 percent this year, which was also agreed by the private sector, Commerce Minister Jurin Laksanawisit said.
“There are many negative factors such as the slowing economy, particularly the economies of Thailand’s major trade partners,” he told a news conference.
High oil prices have pushed up costs, with the strengthening of the baht reducing export competitiveness, Jurin said.
Among major markets in December, exports to the United States dropped 3.9 percent year-on-year while those to Southeast Asia fell 19.0 percent. Exports to China fell 20.8 percent from a year earlier, the ministry said.
In December, imports fell 12 percent from a year earlier, compared with a forecast 8 percent drop. Many imports will be used for producing goods to be shipped out again.
Thailand recorded a trade deficit of $1.03 billion in December, versus a forecast deficit of $1.06 billion.
In 2022, imports rose 13.6 percent, with a trade deficit of $16.1 billion. — Reuters
