Thailand's Auto Production Hits Record Low Amidst Flooding Disaster

Strategic Insights -

Thailand's automotive industry faced a disastrous November, with production plummeting to a record low of 23,695 units, a drop of 85% year-on-year and 52% compared to the previous month. According to Surapong Paisitpatnapong, spokesman of the Automotive Industry Club of the Federation of Thai Industries (FTI), this was the lowest production level since mid-1999. The megafloods in the central provinces led to a shortage of parts, resulting in reduced production of sedans, trucks, pickup trucks, and motorcycles.

Key Takeaways:

  • The record low production of 23,695 units was the lowest since mid-1999, a period of over 12 years.
  • Auto production in November dropped 85% year-on-year and 52% compared to the previous month.
  • The overall volume of auto production for the first 11 months reached 1,358,000 units, a 9.92% decrease year-on-year.
  • Domestic car sales in November hit a record low for the past 118 months, with 26,069 units sold, a 39% drop from October and a 67% decrease year-on-year.
  • The auto sales volume had dropped consecutively for two months due to the megafloods.
  • Although some plants reopened in mid-December, only partial production operations could resume, and a transport problem of spare parts imported from overseas existed.
  • Car production for export in November was recorded at 6,258 units, a 92.14% drop year-on-year, the record low for the past 154 months.
  • The export value for cars, engines, and spare parts in November was at over Bt14.9 billion (US$476.19 million), a 69.5% drop from the same period last year.

Statistics:

  • Auto production in November: 23,695 units (record low)
  • Year-on-year drop in auto production: 85%
  • Drop in auto production compared to the previous month: 52%
  • Overall auto production for the first 11 months: 1,358,000 units (9.92% decrease year-on-year)
  • Domestic car sales in November: 26,069 units (record low for 118 months)
  • Year-on-year drop in domestic car sales: 67%
  • Export value for cars, engines, and spare parts in November: Bt14.9 billion (US$476.19 million)
  • Year-on-year drop in export value: 69.5%
  • Export value for cars and spare parts, and motorcycles and spare parts for 2011's first 11 months: Bt530 billion (7.6% drop year-on-year)

Sources:

  • "Thailand's auto production hits record low in November" by Asia Pulse, December 23, 2008
  • (TNA-OANA) nt 23-12 2008