Thai auto industry can expect bounce back in 2021
Thailand’s automobile industry, which was stalled earlier by COVID-19 pandemic, will accelerate in 2021, achieving between 3 and 4 percent growth, according to analysts at one of Thailand’s leading banks.
Krungsri Research Center said that commercial vehicle sales would be particularly strong in the next two years because of growth in the construction sector, online retail businesses, and logistics businesses.
The automobile sector is a key industry for the Thai economy. The Kingdom was recognized as “the Detroit of Asia,” because of the strength and diversity of vehicle investment and manufacturing, mostly by leading international automakers.
Today, Thailand’s automotive industry is transitioning to electric vehicles, which are becoming a growing segment of the market.
Despite drops in car production, sales and exports from the pandemic last year, Krungsri Bank said that domestic sales should grow at an average of 3 to 4 percent during the next two years, in tandem with the economic conditions that gradually recover.
Carmakers are confident enough in an economic turnaround that many plan to launch new models, both in classic combustion engines and in electric vehicles, Krungsri added.
The analysts expect exports to increase by 4 to 5 percent as the global economy recovers and as commerce expands in Southeast Asia’s free trade area, including the ten member countries of the Association of Southeast Asian Nations (ASEAN).
Photo courtesy of https://kmc.exim.go.th/