Bangkok (VNA) - Car manufacturers in Thailand have decided to delay making some models for export due to US President Donald Trump's new tariff policy.
Surapong Paisitpatanapong, Vice Chairman of the Federation of Thai Industries and spokesman for its Automotive Industry Club said Washington's trade policy has caused Thailand's trading partners to reduce purchases of mostly internal combustion engine-powered cars. Many countries are waiting for a clearer tariff policy from Trump.
In February, car exports continued to fall by 8.34% year-on-year to 81,323 units. In the first two months of this year, exports plunged by 18.1% to 143,644 units.
Another factor behind the dip is stricter regulations by some countries to control carbon dioxide emissions, especially in the transport sector, said Surapong.
Domestic auto sales continued to drop in February by 6.68% year-on-year to 49,313 vehicles, mainly attributed to prospective buyers' difficulties in accessing auto loans as banks and car financing companies have tightened lending criteria amid high household debt levels. For the first two months of this year, sales dropped by 9.53% to 97,395 vehicles.
The club expects the 46th Bangkok International Motor Show, running from March 26 until April 6, to help lift vehicle sales thanks to attractive sales promotions.
The club is also upbeat given the cabinet's recent approval of the establishment of a 5-billion THB (147.26 million USD) fund to drive pickup loans for small and medium-sized enterprises.
Stagnant vehicle sales have caused manufacturers to reduce production. In February, total auto manufacturing fell by 13.6% year-on-year to 115,487 units. In the first two months of this year, auto production decreased by 19.3% to 222,590 units./.
