Thailand’s auto crown under threat as Indonesia eyes Asean’s top spot

[BANGKOK] Thailand’s automotive sector, which contributes approximately 10 per cent of the kingdom’s gross domestic product, is this year grappling with dual blows – plunging domestic sales and flagging exports – which threaten its long-held status as South-east Asia’s largest car production hub.

The Federation of Thai Industries slashed its 2024 production target to 1.5 million units, down from 1.7 million, marking an 18 per cent year-on-year decline – the steepest since 2020.

It cited a stagnating domestic market, with about 600,000 units expected to be sold locally, and the rest exported.