Car production in 2023 is expected to grow by 5.5% to 1.9 million units after 2022, to grow 6.7% to 1.8 million units. Domestic car production will be supported by the Thai economy in 2023, which we estimate GDP. will grow 3.2% (compared to 2022 will grow 3.2%) and private consumption is expected to grow 4%. It is expected to be driven by the global economy in 2023, which the IMF expects to grow by 2.7% (compared to 2022 growth of 3.2%), especially the Thai car export market, Emerging and Developing Asia, to grow 4.9% (compared to 2022 growth of 4.4 %)
The Thai government has set a long-term goal of producing 725,000 clean electric vehicles (ZEV – Zero Emission Vehicle) or 30% of Thai automotive production in the year 2030, with the first step within 4 years or 2025. Produce 225,000 electric vehicles or 10% of total production. Therefore, government measures include subsidies, import tax reduction and excise tax reduction. Will make BEV cars cheaper about 2.26-2.47 hundred thousand baht. Conditions for receiving this privilege. Car manufacturers must produce compensation equal to the amount imported. which carmakers MG, GWM, BYD, PTT & Foxconn plan to produce electric cars in 2024 will help increase sales of auto parts stocks
Outlook for 2024 We expect car production to return to the same level as before the Covid-19 outbreak, approximately 2 million units.