The country's automotive exports increased for the first time in 14 months in August as the recovering global economy helped spur demand, says the Federation of Thai Industries (FTI).
Yesterday the FTI's automotive industry club reported car exports in August increased by 9.26% to 102,907 units thanks to better demand in every region except the Middle East and Africa.
August export value for automobiles increased by 6.19% to 54.2 billion baht.
Surapong Paisitpatanapong, a club spokesman, said shipments to Oceania grew 32.6% to 33,086 vehicles, while exports to Asia increased by 2.11% to 25,406 units.
The club sees potential in other regions such as Europe, North America and Latin America based on last month's figures.
"We predict positive numbers for Thailand's vehicle shipments in the four remaining months this year," he said.
"Pickup truck exports last month rose 7.05% to 62,313 units and this segment is projected to prop up the sector."
However, overall car exports in the first eight months have contracted, with shipments of 729,328 units, down by 7.46%. Export value was worth 385.7 billion baht, down by 8.52%.
The club recently cut its export projection for 2017 from 1.2 million to 1.1 million units. That is a 7.5% drop from 2016 vehicle exports because of smaller demand in the Middle East, which used to be a major destination.
The club reported car production in August increased by 13.5% to 177,415 units.
Total car output in the first eight months this year decreased to 1.287 million units, down by 1.24% from the same period last year.
Car sales in August grew for the eighth consecutive month year-on-year, up 6.8% to 67,962 units. Sales increased by 4.3% from July because car manufacturers have continued to introduce new car models to stimulate the local market, said Mr Surapong.
There were many positive factors such as an increase in the number of tourists and crop production as well as a pick up in exports and private sector investment.
Total sales for the first eight months grew 10.2% to 543,120 vehicles.
Pickup truck sales rose by 8.6% to 228,922 units while passenger car sales grew sharply by 20.7% to 215,150 units. Sport-utility vehicles sales rose slightly by 0.7% to 33,635 units.
For motorcycles, both completely built-up and knocked-down, output in August dipped by 7.03% to 202,088 units. Production for the first eight months stood at 1.698 million units, up by 5.51%.
In a related development, the FTI reported the Thai Industries Sentiment Index rose for the first time in five months in August to 85.0 from 83.9 in July.
Chen Namchaisiri, chairman of FTI, said the index reflected more industrial confidence from medium-sized and large companies.