Army Coup Latest Blow to Thailand Auto Industry
The Federation of Thai Industries’ industrial confidence index in April fell to its lowest point in 58 months as industries were concerned about economic sentiment caused by having a caretaker government with no real administrative power.
The military seizes power in a coup in Thailand after six months of political crisis and, not coincidentally, the auto industry reports April production crashed to its lowest level in 28 months and sales also plunged last month.
The Federation of Thai Industries’ Automotive Industry Club reports vehicle sales tumbled 33.2% to 73,242 units, while production plummeted 25.6% to 126,730 units.
The government’s National News Bureau cites the prolonged political instability and the end of government incentives for first-time car buyers for the industry’s downturn.
Auto exports rose 2.3% in April to 69,804 units, nowhere near enough to offset the domestic slump in deliveries.
The Bangkok Post reports the Federation of Thai Industries’ industrial confidence index in April dropped to its lowest point in 58 months as industries were concerned about economic sentiment caused by having a caretaker government with no real administrative power.
The News Bureau reports Army Chief General Prayuth Chan-ocha as announcing the armed forces and police have formed a National Peacekeeping Council to take power.
The announcement comes two days after Prayuth declared martial law, saying the army had to restore order and push through reforms.
The military moved after the failure of a seven-partite meeting aimed at finding a solution to six months of anti-government protests.
The English-language The Nation newspaper reports the military then detained the leaders of the rival political groups at the meeting. The whereabouts of caretaker Premier Niwuttamrong Boonsongpaisan, who refused to attend the meeting, is not known.
Prayuth says the coup was necessary to protect the life of the people.
“In order for the country to return to normal quickly the National Peace Keeping Committee comprised of the army, the Thai armed forces, the Royal Air Force and the police need to seize power as of May 22 at 4:30 p.m.,” he is quoted as saying.
Prayuth asked the public to go about their daily lives as usual as the coup leaders announced a 10 p.m. to 6 a.m. curfew.
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