Domestic car manufacturing is expected to exceed its target of 1.6 million units this year, thanks to the reopening of the country and greater consumer confidence, says the Federation of Thai Industries (FTI).
The FTI is hopeful output will reach 1.68-1.69 million units after previous lockdown measures caused concern over sluggish car sales.
From January to November, car manufacturing tallied 1.53 million units, an increase of 19.3% year-on-year, said Surapong Paisitpatanapong, vice-chairman and spokesman for the FTI's automotive club.
"The 11-month production is getting close to the target. This does not include the sales boost from the Motor Expo and car sales in December," he said, believing the two factors will drive up car manufacturing.
The club expects car production to reach 1.7-1.8 million units next year, with production for export standing between 900,000 and 950,000 units.
However, whether the 2022 target will be achieved depends on outbreaks of the Omicron variant and the prolonged global semiconductor shortage, Mr Surapong said.
According to the club, car manufacturing in November totalled 165,353 units, the highest in 12 months.
"Car exports are a key driver, with production for export accounting for 54.5%, or 90,112 units, of total car manufacturing," he said.
The remaining 45.5% was produced for sale in Thailand. Domestic car sales in November decreased by 3.2% year-on-year, but increased by 11.3% from October to 71,716 units.
"The 11.3% growth was the highest in eight months. This happened because people were confident about the country reopening, an economic rebound, and higher future income," said Mr Surapong.
Car exports in November increased by 32.6% to 98,829 units, driven by growing demand for pickups in overseas markets, the club said. Thailand is a production hub for pickups.
