Car firms warned of new Australia rule
Auto exports to Australia may be affected by a new trade barrier expected to be imposed on new cars shipped to the country next year, warns the Thai Automotive Industry Association (TAIA).
Known as the new vehicle efficiency standard, the regulation aims to limit the rate of carbon dioxide emissions per kilometre from new cars sold in Australia, said TAIA president Suwat Supakandechakul.
“We expect this measure to be in place in 2025, and the new rule nudges manufacturers to produce more efficient cars, including electric vehicles,” he said.
Thailand is a major car manufacturer, mainly exporting vehicles with internal combustion engines.
However, the market is shifting to zero-emission cars as part of an effort to limit global warming.
Australia is a target market for Thai car companies because of its strong economy, said Mr Suwat.
Last year, 301,651 vehicles, accounting for 27% of total exports, were shipped to Australia, New Zealand and Oceania. These vehicles comprise pickups and passenger cars.
Car exports to the Middle East made up 19%, with 29% sold to Asian countries and the remainder exported to other markets.
Thailand is the world’s 10th-largest car producer, with a manufacturing capacity of 1.8-1.9 million units a year, higher than Indonesia (1.3 million units) and Malaysia (770,000 units).
The TAIA expects Thailand’s 2024 capacity to increase by 3.1% year-onyear to 1.9 million units, with motorcycle manufacturing growing by 0.3% to 2.12 million units. The increase assumes the global economy will improve, helping to drive car exports, with the Thai economy continuing to recover, paced by tourism and government stimulus measures, according to the association.
“We believe car production for exports will reach 1.15 million units this year, while car production for the domestic market will tally 750,000 units,” said Mr Suwat.
Motorcycle manufacturing for the domestic market is estimated at 1.7 million units, higher than the production for export, representing 420,000 units, according to TAIA.
Last year Thai car manufacturing totalled 1.84 million units, a year-onyear decrease of 2.22% attributed to lower domestic sales.