Thailand's passenger car exports to ASEAN are expected to lose their leading position in 2024, and reclaiming the top spot may prove difficult ahead (Current Issue No.3529 Full Ed.)

• Thailand’s total car exports are projected to contract by 6 percent in 2024, with Thailand's share in the key markets, including ASEAN, significantly losing ground in the passenger car segment. This is largely due to increased competition from Chinese battery electric vehicles (BEVs), Japanese hybrid cars, and small cars from Indonesia, supported by the government’s subsidies and buyers’ needs for economical cars.
• Looking ahead, although Thailand may regain market share somewhat through increased production of BEVs and hybrids for export, the country will still face pressure from China and Japan as they still need to export BEVs and hybrid cars. Additionally, related incentives introduced by other ASEAN governments, aimed at inducing purchases of BEVs and hybrid cars scheduled to expire, while Indonesia is ramping up its domestic BEV production.