Rapidly sliding global demand is expected to cut Thai automobile production by more than 35 per cent next year, said a report Saturday.The number of vehicles produced could drop from 1.4 million this year to less than 1 million, if domestic sales fall 10 per cent and exports crash 50 per cent, Wallop Taisiri, director of the Thailand Automotive Institute, was quoted as saying by the Bangkok Post.
Thousands of workers have already lost jobs and more are at risk, the report said. The Commerce Ministry said last week the country's total exports dropped in November for the first time in six years, by 18.6 per cent. About 60 per cent of Thai vehicle production is exported. Thailand also has an extensive parts industry supplying vehicle manufacturers, noted Wallop. He predicted as many as 45,000 workers could lose their jobs.
"It probably won't be as bad as the 1997 (financial) crisis, when vehicle production fell to 140,000 units. But I expect to see this crisis last longer because we rely heavily on exports, and the slump is global," Wallop said. "Things may bottom out next year but we may need two years to move out of crisis." The Federation of Thai Industries will meet early next year to co-ordinate requests for government help.