Bangkok: Thai exports have continued to grow, marking a significant achievement for the Ministry of Commerce as it reports 20 consecutive months of growth. However, the automotive sector faces difficulties amid broader economic concerns.
According to Thai News Agency, the Ministry of Commerce announced February's export figures, which reached over US$29 billion, reflecting a 9.9% increase. This consistent growth showcases the resilience and demand for Thai products in the global market, even as the country grapples with a trade deficit due to higher overall imports. Notably, there has been a 17% increase in exports during the first two months of the year, providing a vital boost to the Thai economy during a period marked by high global uncertainty.
The automotive sector, however, presents a contrasting scenario. The Federation of Thai Industries (FTI) reported a 2.17% decline in domestic car sales for February. The electric vehicle (EV) segment was particularly affected, experiencing an 18.56% decrease following the cessation of government subsidies. This decline is compounded by stringent lending criteria from financial institutions, driven by rising household debt and diminished purchasing power. Additionally, car exports are beginning to see a downturn, attributed to logistical challenges in the Strait of Hormuz, where shipping routes are disrupted, causing delays and uncertainty among carriers awaiting developments in India and Singapore.
Mr. Surapong Paisitpatthanapong of the Federation of Thai Industries expressed concerns about the potential for a prolonged conflict in the Middle East, which could lead to increased energy prices and higher production costs. While the FTI initially maintains its 2026 car production target at 1.5 million units, this goal is subject to reassessment mid-year. Should the Thai economy underperform, growing less than the anticipated 1.2%, the industry may need to implement a crisis management strategy to mitigate the impact on car and motorcycle sales nationwide.