Thailand is one of the largest exporters of vehicles in ASEAN and a major driver of the economy—with a highly integrated network supply chain downstream.
Due to the widespread COVID19 pandemic, the auto parts industry is expected to shrink, according to the auto parts industry club under the Federation of Thai Industries (FTI). This is driven by temporary closures of car manufacturing plants across Thailand such as Toyota Motor Thailand, Honda Automobile Thailand, Ford and Mitsubishi Motors, as well as reducing global purchasing power.
Thailand’s auto part industry is valued an average 1.6 trillion baht per year, following car production output in Thailand. However, due to economic difficulties, FTI has previously reduced its production estimate by five percent for 2020—from two million units to 1.9 million units.
The club is considering a downgrade in the outlook for sales value and auto parts volume in 2020 due to the impact of COVID-19 which will be announced in May.
For other exclusive articles, visit www.equipment-news.com.
Check these articles out:
WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!