Thailand’s car, motorcycle sales may be affected by bank failure risk

Illustrative image (Photo: nationthailand.com)

Bangkok (VNA) - Thailand's domestic car and motorcycle sales may suffer the brunt if Thai financial institutions are affected by the risk of bank failures in the US and Europe, according to the Federation of Thai Industries (FTI).

The concern was raised after US and European banking executives and regulators stepped in to save California-based Silicon Valley Bank, New York-based Signature Bank and 167-year-old Credit Suisse in Switzerland from potential crisis.

Surapong Paisitpatanapong, FTI Vice Chairman, said that if the financial turbulence cannot be contained, the global financial system will be affected, which may eventually have a negative impact on Thai banks and non-banks that grant loans to car and motorcycle buyers.

The FTI is closely monitoring whether global financial institutions will face an impact, he said.

The FTI’s Automotive Industry Club predicted that if the Thai auto industry is not overwhelmed by these negative factors, its total auto production will reach the target of 1.95 million units this year, up 3.53% from the more than 1.88 million units by 2022.

Automobile production in Thailand rose 6.39% in February from a year earlier to 165,612 units, as the shortage of microchips eased and export increased.

In the month, export climbed 11.42% from a year earlier to 88,525 units. Domestic sales, however, dropped 3.94% year-on-year to 71,551 units./.

VNA