This study analyzes the off-highway vehicle market in Thailand, focusing on the construction and mining equipment (earthmoving equipment) and agriculture equipment segments. It presents the current scenario in the off-highway vehicle market in Thailand and provides analysis and forecast to 2025.
New York, March 31, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Competitive Intensity Transforming Thailand’s Off-highway Vehicle Market, 2020" - https://www.reportlinker.com/p06018986/?utm_source=GNW
In 2019, Thailand’s off-highway vehicle equipment market reached a total sales volume of 57,800 units.Of this figure, the sales included 4,000 mini excavators, 3,200 hydraulic excavators, 46,000 tractors, and 3,800 combine harvesters.
The Thai government’s significant investment in infrastructure is forecast to boost national demand for off-highway vehicles. The EEC, a project with investments worth $49.9 billion by 2025, is part of Thailand’s 4.0 program to transform the country into a high value-added economic and logistics hub. The EEC covers 3 provinces—Chachoengsao, Chonburi, and Rayong—in southeastern Thailand and seeks to develop this region into a vital economic hub and attract foreign investments, driving demand for construction machinery. Increasing population and rising urbanization in multiple cities will increase housing and agricultural products demand. The steady population growth is the driving force of the urbanization process. Almost half of the population (46%) are young people (25–54 years old), who will need housing, increasing the demand for construction equipment (hydraulic excavators and mini-excavators in urban areas). The high cost of living in the Bangkok metropolitan area makes cities outside Bangkok attractive, such as Chiang Mai, Khon Kaen, and Songkhla. These provincial capitals offer high-quality universities, innovation-focused science parks, low-cost manufacturing bases, and increasing connectivity to nearby international markets, such as China, Cambodia, Laos, Myanmar, and Vietnam. As the world’s second-largest rice exporter and one of the leading exporters of rubber and cassava, Thai agricultural exports also have a positive outlook in the long term. Demand from China and the ASEAN region will lead the agricultural export market. These factors signal an opportunity for the agricultural equipment market. However, the economic downturn as a result of COVID-19 is placing pressure on investment and expenditure. In 2020, demand for construction machinery is expected to drop by approximately 20%–30%, and in some regions, by 50%. The pandemic has led to a liquidity crunch, collapse of the global trade, and supply chain disruption. Factory manufacturing machinery (including earthmoving equipment) is also affected by labor movement restrictions, impacting factory production output. Contractors and construction equipment providers that relied on timely cash flow from the government budget have been affected by the delayed release of funds as the government prioritized outflows.Refurbished off-highway vehicles have a higher usage rate than new off-highway vehicles. Used off-highway vehicles, imported from Europe and other Asian countries, present commendable demand in Thailand. As emissions standards are still being developed, used vehicles continue to attract healthy demand and are a key restraint for new off-highway vehicle sales.
Read the full report: https://www.reportlinker.com/p06018986/?utm_source=GNW
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