Connect with us

Business

Thailand’s Vehicle Production Faces Steep Decline in 2024

Published

on

Automotive Production in Thailand Declines by Over 25% in September 2024

Thailand’s automotive industry has encountered a sharp drop in production, with vehicle output reaching only 122,277 units in September 2024. This represents a 25.48% decrease compared to September 2023. Both domestic and export markets have felt the impact, as tightening economic conditions and stringent lending practices limit buyer capacity.

Key Factors Behind Thailand’s Automotive Production Slowdown

Decline in Domestic and Export Production

Thailand’s vehicle production for export markets fell by 15.78%, totaling 87,666 units, while domestic production witnessed a steeper decline, with production down by 42.31% to 34,611 units. According to Surapong Paisitpatanapong, advisor to the Federation of Thai Industries (FTI), domestic car sales in September dropped to the lowest level in over four years, with only 39,048 units sold—a 37.11% year-over-year decline.

Stricter Loan Approval Criteria Impacting Buyers

The downturn has been largely attributed to stringent loan approval criteria imposed by financial institutions. With high levels of Special Mention (SM) loans at 208.575 billion baht and non-performing loans reaching 259.330 billion baht as of July 2024, buyers are finding it increasingly difficult to finance vehicle purchases.

Thailand’s Economic Growth Remains Modest

Thailand’s economic growth rate remains underwhelming, with a 2.3% growth in Q2 of 2024 and forecasts indicating a full-year growth rate of around 2.7% to 2.8%. This sluggish growth has compounded issues in the automotive industry, as reduced consumer spending impacts vehicle sales.

Challenges in the Global Export Market

Declining Exports and Middle Eastern Market Challenges

The ongoing conflict in the Middle East has limited shipping routes, affecting Thai exports. As a result, Thailand’s automotive exports fell by 17.67% to 80,254 units compared to last year. Except for Australia, which saw an increase, all major markets have reported declines in vehicle sales.

Year-to-Date Production Figures

From January to September 2024, Thailand produced 774,175 vehicles for export, a 4.42% drop compared to the same period last year. Domestic production during the same period fell by 38.57% to 353,851 units.

FTI’s Revised Production Forecast for 2024

Given the current challenges, FTI plans to revise its 2024 production targets in November. The previous target of 1.7 million units may be lowered, with export targets reduced by 50,000 to 100,000 units and domestic targets decreased by 20,000 to 30,000 units.

Financial Institutions and EV Market Hesitancy

Ongoing strict lending practices continue to limit buyer potential, while uncertainty around electric vehicle (EV) pricing has caused hesitation among consumers. Despite a global drop in lithium prices leading to lower battery costs, concerns persist about potential price surges in 2025.

Looking Forward: Overcoming Challenges in Thailand’s Auto Industry

As Thailand’s automotive sector navigates these economic and logistical challenges, industry leaders are closely monitoring global and domestic trends. The FTI’s upcoming production revision will aim to align industry expectations with current market realities, helping to stabilize and adapt to ongoing shifts in the automotive landscape.

 

Ref – Thaiger

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Business

10 In-Demand Careers for 2025: Future Proof Your Career

Published

on

By

Exploring the Future Job Market: Top Careers to Consider

As we approach 2025, the job market is undergoing significant changes driven by technological advancements, demographic shifts, and evolving consumer needs. According to the World Economic Forum, while approximately 85 million jobs may be replaced by machines, an estimated 97 million new roles are set to emerge. This article highlights ten in-demand careers that are expected to thrive in the coming years.

Key Factors Driving Job Growth

The demand for skilled professionals is being fueled by several key trends, including the rise of digital technology, the need for data analysis, and a growing focus on sustainability. Understanding these trends can help job seekers target their career paths effectively.

Top 10 In-Demand Careers for 2025

1. Software Developer

Software developers are crucial in creating applications and systems that drive businesses forward. Their expertise in programming languages and software design makes them indispensable in today’s digital landscape.Salary Range: 25,000-140,000 baht/month

2. AI & Machine Learning Engineer

With artificial intelligence becoming integral to various industries, AI and machine learning engineers are in high demand. They specialize in developing algorithms and models that enable machines to learn from data.Salary Range: 60,000-80,000 baht/month

3. Data Analyst

Data analysts play a vital role in interpreting complex data sets to inform business decisions. Their ability to derive insights from data helps organizations optimize their strategies and improve performance.Salary Range: 40,000-80,000 baht/month

4. Data Scientist

Data scientists focus on advanced analytics and predictive modeling to provide actionable insights for businesses. They combine statistical knowledge with programming skills to enhance decision-making processes.Salary Range: 35,000-80,000 baht/month

5. Digital Marketing Specialist

Digital marketing specialists leverage online platforms to create effective marketing strategies. Their skills in content creation and data analysis help businesses engage with their target audiences effectively.Salary Range: 30,000-80,000 baht/month

6. Cybersecurity Professional

As cyber threats increase, cybersecurity professionals are essential for protecting organizational data and systems. They implement security measures and respond to incidents to safeguard against breaches.Salary Range: 60,000-100,000 baht/month

7. Cloud Engineer

Cloud engineers design and manage cloud-based infrastructure and services. With the growing adoption of cloud computing, their expertise is crucial for organizations transitioning to cloud environments.Salary Range: 50,000-90,000 baht/month

8. Nurse Practitioner

The healthcare sector is experiencing a surge in demand for nurse practitioners who provide primary care services. Their role is vital in addressing the needs of an aging population and increasing healthcare accessibility.Salary Range: 120,000 baht/month

9. Renewable Energy Technician

As the world shifts towards sustainable energy sources, renewable energy technicians are becoming increasingly important. They install and maintain systems such as solar panels and wind turbines.Salary Range: $46,000/year (approx. 40,000 baht/month)

10. Content Creator

Content creators produce engaging material across various platforms to connect with audiences. Their creativity in writing, video production, and social media management drives engagement and brand awareness.Salary Range: 25,000-50,000 baht/month

Preparing for Future Careers

The job market of 2025 promises exciting opportunities across various sectors driven by technology and sustainability initiatives. By focusing on developing relevant skills for these in-demand careers—such as software development, data analysis, and cybersecurity—individuals can position themselves for success in a rapidly evolving landscape. Embracing continuous learning will be essential for thriving in this dynamic environment.

Continue Reading

Business

Thailand Commits to Becoming an AI Learning Hub

Published

on

By

Thailand AI Learning Hub

Ministers Announce Plans for AI Governance Collaboration

Thailand is dedicated to advancing global trust in artificial intelligence (AI) governance and establishing itself as a learning hub for AI through collaboration with UNESCO, according to Prasert Jantararuangthong, the Minister of Digital Economy and Society (DES). This initiative aims to enhance the ethical application of AI technologies while fostering skilled professionals in the field.

Goals for AI Workforce Development

The Ministry of Higher Education, Science, Research and Innovation (MHESI) has set ambitious goals to increase the number of AI-skilled workers by adding 30,000 engineers over the next three years. This plan includes generating 100 AI innovations valued at 40 billion baht and promoting AI adoption across 600 agencies nationwide.

Significant Increase in AI Adoption Rates

According to the AI Readiness Measurement 2024 report by the Electronic Transactions Development Agency and the National Science and Technology Development Agency, AI adoption plans among Thai organizations have reached 73.3%, reflecting an increase of nearly 20 percentage points year-on-year. This surge indicates a growing recognition of the importance of AI in various sectors.

Hosting the UNESCO Global Forum on AI Ethics

On Wednesday, the DES Ministry, MHESI, the Education Ministry, and UNESCO announced their partnership to host the 3rd UNESCO Global Forum on the Ethics of AI 2025, themed “Ethical Governance of AI in Motion.” This event is scheduled to take place from June 24 to 27, 2025, in Bangkok and will serve as a platform for knowledge exchange and collaboration on AI governance.

Commitment to Ethical AI Implementation

Prasert emphasized that Thailand’s commitment aligns with UNESCO’s AI Readiness Assessment framework, which is recognized globally. The country has recently introduced key frameworks such as the AI Governance Guideline for Executives and the Generative AI Governance Guideline for Organizations. These resources aim to ensure responsible and transparent implementation of AI at all organizational levels.

Multilateral Collaboration for Developing Countries

The upcoming forum is expected to foster multilateral collaboration and build AI governance capacity in developing countries. It highlights Thailand’s dedication to global trust in AI governance while positioning itself as a leader in ethical AI practices.

Integration of AI Technologies Across Industries

Suphachai Jaismut, vice-minister for MHESI, stated that Thailand is prepared to integrate AI technologies across various industries, driven by a commitment to advancing research and development (R&D). This integration is crucial as Southeast Asia’s digital economy continues to grow rapidly.

Addressing Challenges in the Digital Economy

While advancements in AI infrastructure are promising, challenges such as the digital divide and job displacement due to automation remain significant concerns. Xing Qu, deputy director-general for UNESCO, emphasized that building peace through education, science, and culture is vital in an era where AI increasingly influences societies and economies.

Continue Reading

Business

Thailand to Finalise Free Trade Agreement with EFTA by January 2024

Published

on

Thailand is preparing to finalise a landmark Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) by January 2024. The agreement marks Thailand’s first FTA with a European trade bloc and is expected to bolster exports, attract investments, and enhance Thailand’s position in the global economy.


EFTA Partnership: A Milestone in Thailand’s Trade Strategy

Who Are EFTA Members?

The EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein, offering Thailand access to lucrative European markets.

Commerce Minister Pichai Naripthaphan highlighted the FTA’s importance, describing it as a pivotal step for economic growth and trade expansion.

“This is Thailand’s inaugural FTA with a European bloc, setting a precedent for modern trade standards and sustainable development goals,” said Pichai.


Comprehensive Scope of the Agreement

What Does the FTA Cover?

The FTA includes 15 broad areas designed to modernise trade relations and foster sustainable development. Key areas include:

  • Trade in Goods
  • Rules of Origin
  • Investment Opportunities
  • Trade Facilitation
  • Intellectual Property Rights
  • Sustainability and SMEs Development

Future Expansion Opportunities

The FTA is seen as a stepping stone toward future trade agreements with other significant partners, including the European Union, advancing Thailand’s global trade ambitions.


Economic Impact of the Thailand-EFTA Trade Partnership

Surging Trade Figures

Between January and October 2023, trade between Thailand and the EFTA exceeded US$10 billion, accounting for 2.03% of Thailand’s global trade and reflecting a 23.22% year-on-year growth.

Key Thai Exports and Imports

  • Exports to EFTA: Jewellery, watches, canned seafood, machinery, cosmetics, and rice.
  • Imports from EFTA: Gems, gold, pharmaceuticals, scientific equipment, and fresh seafood.

The agreement is expected to further diversify and increase Thailand’s trade portfolio.


Next Steps: Approval and Implementation

High-Level Signing at WEF Davos

The FTA will be presented to the Thai Cabinet for approval before its official signing at the World Economic Forum (WEF) in Davos, Switzerland, in January 2024. Prime Minister Paetongtarn Shinawatra and Commerce Minister Pichai will attend the signing ceremony.

Ratification and Rollout

Following Parliamentary approval, the agreement will be ratified, paving the way for implementation and significant contributions to Thailand’s GDP growth.


A Strategic Vision for Thailand’s Future

The Thailand-EFTA Free Trade Agreement aligns with Prime Minister Paetongtarn Shinawatra’s vision of positioning Thailand as a global trade hub. By establishing this partnership, Thailand is set to achieve:

  • Increased export opportunities
  • Enhanced foreign investment
  • Strengthened trade ties with Europe

As the January deadline approaches, Thailand’s first European trade agreement symbolizes a bold step toward economic transformation, underscoring its commitment to modernisation, sustainability, and global collaboration.

Continue Reading

Trending

Copyright © 2025 Phuket Time News.