BANGKOK, Oct. 24 (Xinhua) -- Thailand's auto production extended its contraction in September due to lower output for both domestic market and exports, data from the Federation of Thai Industries (FTI) showed on Thursday.
Thai auto manufacturers produced 122,277 vehicles last month, down 25.48 percent from a year earlier, accelerating from a 20.56 percent drop in August, according to the FTI.
For the first nine months of 2024, auto production declined 18.61 percent over the previous year to 1,128,026 units, owing to a reduced output for internal combustion engine passenger cars and pickup trucks, said Surapong Paisitpattanapong, FTI automotive industry club vice president and spokesperson.
Domestic auto sales shrank 37.11 percent year-on-year to 39,048 units in September, reaching the lowest record in 53 months as banks tightened lending policies to address high household debt, Surapong told a news conference.
According to the National Credit Bureau, non-performing auto loans in the third quarter jumped 28.6 percent from the previous year to 259.33 billion baht (about 7.69 billion U.S. dollars), reflecting limited purchasing power amid sluggish economic growth.
The Southeast Asian country's finished car exports fell 17.67 percent from a year earlier to 80,254 units in September, brought down by mounting geopolitical tension in the Middle East and weaker demand from key trading markets, Surapong said.
He noted that the federation would further reduce its 2024 auto production target after slashing it to 1.7 million units in July on the back of a lower projection for domestic sales.
Thailand's auto production stood at 1.84 million units in 2023. ■