Trapped in spare parts shortage Thailand's auto exports are expected to increase only slightly

The analysis of Thailand’s automobile exports in the first half of this year reveals that although exports in the first quarter increased by 8.2% due to the increase in demand from major trading partners, Thailand’s auto exports experienced the effects of the earthquake and tsunami in Japan after the second quarter. As a result of the shortage of automotive parts and components, the delivery of automobiles has decreased significantly with the decision of a number of auto companies to reduce production, resulting in a 24.6% decline in Thai car exports in the second quarter, which was the first time in more than a year.

Although the shortage of auto parts in Japan, which is the main reason for the decline in auto exports, has been alleviated to a large extent, it will be beneficial to Thai auto exports for the rest of the year, but exports to certain markets are still constrained by certain factors, such as Economic issues and political disputes will lead to an increase in auto exports to these markets that will be lower than 2010 levels. In addition, given the base effect of a 59% increase in auto exports last year, and the fact that each auto company will give priority to maintaining a strong domestic market base for auto sales, the volume of auto exports in the second half will begin to return to normal due to production capacity. While it has grown from the first half of the year, it still failed to promote the full-year auto exports of 2011 to a level that had previously been forecast at 1 million vehicles. Taihua Farmers Research Center expects that Thailand's auto exports will reach 505,000 to 540,000 vehicles in the second half of 2011, an increase of 30 to 40% from the 384,410 vehicles in the first half of the year.

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