Key Takeaways
- Car production in Thailand increased by 10.93% in August compared to the same period last year.
- Domestic car sales rose by 25.59% in August, following a 20.07% increase in July.
- Export figures fell by 2.04% year-on-year in August, reversing the previous month's growth.
Car production in Thailand saw a significant rise in August, increasing by 10.93% compared to the same period last year, according to the Federation of Thai Industries (FTI).
This growth follows a 6.12% increase in July, indicating a steady improvement in the automotive sector.
Domestic sales also showed strong growth, with a 25.59% increase in August, up from a 20.07% rise in July, suggesting a boost in local demand.
However, export figures for August were less positive, declining by 2.04% year-on-year, a reversal from the 2.39% increase recorded in the previous month.
The FTI had earlier forecast a 3.33% drop in car production for the entire year 2026, primarily due to a decline in exports resulting from hostilities in the Middle East. This forecast was revised from an earlier prediction of a 3% rise.
Despite the mixed results, the government has announced plans to cut excise tax rates for automakers that establish production facilities in Thailand. The aim is to encourage greater use of locally sourced parts and raw materials, potentially boosting the local industry.
Thailand remains Southeast Asia’s largest automotive production centre and serves as an export base for major global car manufacturers such as Toyota and Honda.
The automotive sector is a crucial part of Thailand’s economy, contributing significantly to both domestic sales and exports. The recent production figures highlight the ongoing challenges and opportunities within the industry.
