Display mode (Doesn't show in master page preview)

24 Mar 2022

Econ Digest

The Russian-Ukrainian war is expected to shrink Thailand’s auto exports by 6-11% in 2022

คะแนนเฉลี่ย

        KResearch projects that the total volume of Thai auto exports in 2022 will likely drop to 850,000 to 900,000 units (down by -6.0% to -11.0% YoY). Any improvement in this year’s export figures will depend on the situation in the Russia-Ukraine war, the speed of lifting sanctions against Russia, and the ability of new auto manufacturers in Thailand such as Chinese carmakers to export cars as planned.
 
        The Russia-Ukraine war has had a profound impact on the global automotive industry, exacerbating the existing auto parts shortage, as both Russia and Ukraine are producers of many raw materials used to produce electronic chips and electric car batteries. After Russia was sanctioned and retaliated by halting the export of various commodities, especially oil, natural gas, various minerals and many agricultural products, many countries are facing the problem of rising inflation. This has eroded consumers’ purchasing power and led to decreased demand for luxury products such as cars.
 
        Thailand’s automotive production base has not been as badly affected as those in Europe, as more than one-third of the countries that import cars from Thailand have been less affected by inflation. For example, OPEC countries and Australia have received more revenue as a result of the sharp rise in oil and commodity prices. In addition, Thai automakers use different sources of parts than European car production bases, and automakers have stockpiled some parts inventory. However, supply shortages stemming from the prolonged war and sanctions against Russia will spread across the world and affect Thailand’s overall auto exports this year.
   
        Based on these key headwinds, KResearch projects that total Thai auto exports in 2022 will likely decline to 850,000 to 900,000 units (down by -6.0% to -11.0% YoY). In addition to improving export figures this year, Thailand’s auto industry must look ahead and speed up adjustments as consumers begin to shift to more electric vehicles. At the same time, Thailand is facing competition from its main rival, Indonesia, in attracting investment. Indonesia’s strong point is that it is the world’s largest nickel producer and has the opportunity to become an important automobile production base and a future competitor to Thailand’s automobile exports.

Scan QR Code


QR Code

Annotation

This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.

Econ Digest