Thai auto exports down 2.8% as chip shortage hits production capacity
Thailand exported 149,284 cars in the first two months this year, down 2.8 per cent year on year due to a microchip shortage, the Federation of Thai Industries (FTI) reports.
The prolonged Russia-Ukraine conflict will exacerbate shortages in microchips and auto parts as Russia has halted exports of nickel, palladium and other raw-material metals, said Surapong Paisitpattanapong, FTI vice president and auto chapter chief.
Also, western countries were boycotting goods from Russia, he added.
The chip shortage came after Covid-19 sparked rising demand for electronic devices, Surapong explained.
"It will take two years for microchip manufacturers to expand production, so we expect the shortage to be resolved in 2024."
The FTI forecasts Thai car exports in the first quarter and first half of this year will drop, Surapong said.
However, the FTI has retained its 2022 export target of 1 million cars compared to 950,000 last year. Thailand’s car production has dropped from 170,000 per month to 150,000 per month, he said.
The FTI was monitoring the Russia-Ukraine conflict's impact on the economy and trade, as well as the impact of rising inflation on daily living costs, he added.