Conflict clouds outlook for Thai vehicle exports

Producers prepare for higher costs

- RANJANA WANGVIPULA

Rows of new vehicles await export at Laem Chabang deep-sea port in Chon Buri.

(PATIPAT JANTHONG)

The auto industry could record sluggish car exports this year following the outbreak of war in the Middle East, which also raises inflation concerns if the conflict is prolonged, says Surapong Paisitpatanapong, vice-chairman of the Federation of Thai Industries and spokesman for its Automotive Industry Club.

The first direct impact would be reduced car exports to the Middle East, as shipping is disrupted in the Strait of Hormuz, he said.

“Changing transport routes will result in more expensive cars and longer delivery times,” Mr Surapong said.

“The effect on the economies of our trading partners — Saudi Arabia, Kuwait and Oman — is another concern.”