Mr.Chakramon Phasukavanich
(Chairman)
In 2024, the Thai automotive industry continued to be affected by the situation at the end of 2023, with the country's household debt-to-GDP ratio rising, leading to stricter lending practices by financial institutions, especially for automobiles. As domestic car purchases are still primarily financed through loans from financial institutions, this has had a significant impact on the overall decline in domestic car sales. The Federation of Thai Industries' Automotive Industry Club revealed the following overview of the automotive industry for 2024.
- - Total vehicle production was 1,468,997 units, a decrease of 19.9 percent compared to 1,834,986 units in 2023.
- - Pickup truck production, including modified pickup trucks, totaled 893,700 units, a decrease of 22.4 percent compared to 1,151,579 units in 2023.
- - Domestic vehicle sales totaled 572,675 units, a decrease of 26.2 percent compared to 775,780 units in 2023.
- - Vehicle exports totaled 1,019,213 units, a decrease of 8.8 percent compared to 1,117,539 units in 2023.
For the Company and its subsidiaries' operating results in 2024, total revenue from sales was 3,214.5 million baht, a decrease of 19.1 percent from 3,973.9 million baht in 2023. The main reason for this was the continued high household debt-to-GDP ratio, which has led to stricter lending practices by financial institutions from late 2023 to the present, especially for automobiles. This is in line with the overall automotive industry in the country.
For the Company's direction of operation in Thailand in 2025, the focus remains on the strategy of maintaining the market for the production and distribution of engine parts and 1-ton pickup truck parts, along with entering into the production of electric vehicle (EV) parts, as well as non-pickup truck parts such as big bikes, big trucks, and passenger cars. This includes the production of non-automotive parts such as agricultural machinery and home appliances to reduce risks and expand the business base. However, due to the recession in the automotive industry in Europe, caused by the COVID-19 pandemic, the shortage of electronic parts, and the Russia-Ukraine war, the subsidiaries in Germany and Hungary have experienced a liquidity shortage and have entered into insolvency proceedings, ceasing all operations since 2024. This will result in the Company no longer having to recognize losses in the Company's consolidated financial statements.
Regarding social responsibility, the Company and its subsidiaries conduct business with sustainability in mind, carrying out various activities that consider economic, social, and environmental benefits, and adhering to good corporate citizenship by complying with all relevant laws and regulations. The Company is committed to developing, promoting, and improving the quality of life of society and communities, especially neighboring communities, in parallel with the Company's growth.
Finally, on behalf of the Board of Directors, we would like to thank our shareholders, stakeholders, employees, and management for their past performance. The Board of Directors is committed to conducting business with transparency under the principles of good corporate governance and social responsibility to ensure the Company's stable and sustainable growth.
