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SATURDAY, December 03, 2022
Shortage of parts hits Thai auto manufacturing in April

Shortage of parts hits Thai auto manufacturing in April

MONDAY, May 23, 2022

The scarcity of parts due to the Russia-Ukraine war and lockdown measures in China continue to impact Thailand’s auto industry, the Federation of Thai Industries (FTI) said on Monday.

Surapong Paisitpattanapong, FTI’s vice president and spokesman, said production, local sales and export of cars and motorcycles dropped by 31.79 per cent in April compared to March because the shortage of parts forced manufacturers to delay production.

The total number of vehicles produced last month came in at 117,786, though the total number of vehicles produced in the first quarter stood at 597,864, up 4.85 per cent year on year.

Surapong said though this year’s situation was better than last year when the pandemic was at its peak, the prolonged war in Ukraine and the Covid-19 crisis in China had disrupted the global supply chain.
Though the production of passenger cars for export dropped by 21.53 per cent due to a lack of parts and semiconductors, the production of pick-up trucks for export rose by 6.17 per cent in April compared to the same period last year.

Last month, 55,696 vehicles were exported, down 40.65 per cent from March but up 5.33 per cent compared to last year. The total export of vehicles, engines and auto parts in April came in at 33.48 billion baht, with Asian countries, the Middle East, North America as well as Central and South America being the biggest importers.

Meanwhile, 63,427 units were sold domestically in April, down 27.30 per cent from March, but up 9.11 per cent from the same month last year thanks to the easing of Covid-19 measures and the holding of the Bangkok International Motor Show, which wrapped up on April 3.

According to the FTI, the first quarter of this year saw 294,616 vehicles and 569,992 motorcycles sold, up 16.79 per cent and 0.12 per cent year on year respectively.

Meanwhile, the government’s support scheme has boosted the registration of electric vehicles by 145.31 per cent in the first quarter compared to the same period last year.

However, there are concerns that the surge in oil prices and a weaker baht will push up the price of goods and household debt, which will weaken people’s purchasing power.