The Federation of Thai Industries (FTI) has downgraded Thailand's total car manufacturing target to 1.75 million units this year as its estimate of more production for domestic sales cannot offset a drop in exports amid geopolitical conflicts and lower consumer purchasing power.
The group's previous target for 2022 was 1.8 million units, but the prediction was made before the Russia-Ukraine war, which worsened the prolonged global semiconductor shortage as the two countries are major exporters of neon gas, a key material for chipmaking.
Semiconductors are key components in car manufacturing.
