Bangkok: The ongoing conflict in the Middle East is causing significant disruptions to Thai car exports, with rising costs and potential production setbacks looming over the industry. The president of the Thai Automotive Industry Association highlighted the critical nature of this impact, as the Middle East represents Thailand's third-largest export market.
According to Thai News Agency, Mr. Suwachar Supaphandechakun, President of the Thai Automotive Industry Association, expressed concern over the current unrest's effects on the country's automotive industry. Last year, Thailand exported over 200,000 vehicles to the Middle East, accounting for 21% of its total car exports. The escalating conflict is sharply impacting both short and long-term aspects of the industry.
In the short term, the unrest is causing a surge in commodity and energy prices and leading to raw material shortages. Over the medium to long term, there is an anticipated rise in inflation, which could slow down economic growth and affect consumer purchasing power. These factors are creating a challenging environment for maintaining stable production and export levels.
If the situation further escalates, making car exports to the Middle East impossible, the consequences could be severe. Currently, transportation routes are disrupted, leading to suspended or delayed exports. With an average monthly export volume of 17,000-18,000 vehicles, any prolonged inability to move stock could result in inventory space issues and increased maintenance costs. This scenario could force a partial halt or slowdown in production.
Moreover, the industry is closely monitoring potential shortages of critical materials like resin and plastic parts. However, Mr. Supaphandechakun reassured that domestic car orders are unlikely to be affected, as current production capacity across various companies remains sufficient to meet local demand.