BANGKOK — After a year marked by weakening exports and political uncertainty, Thailand’s auto industry expects 2026 to bring more stability, setting a production target of 1.45 million vehicles pending clarity on trade policy and the post-election landscape.
Surapong Paisitpattanapong, an adviser to the FTI chairman and spokesperson for its Automotive Industry Club, said total vehicle production in the first 11 months of 2025 fell 1.64% from a year earlier to 1,341,714 units.
Production for export dropped more sharply, falling 8.39% to 862,886 units between January and November. Finished vehicle exports declined 9.77% to 850,787 units over the same period.
Surapong Paisitpattanapong, advisor to the chairman and spokesperson of the Automotive Industry Club at the Federation of Thai Industries (FTI)In contrast, production for domestic sales rose 13.42% to 478,828 units, while domestic vehicle sales increased 5.28% to 546,045 units, he said.
Uncertainty Remains
Surapong said the industry is closely watching Thailand’s post-election political landscape, including which parties will form the next government and how this will affect deliberations on the fiscal 2027 budget. Uncertainty remains over whether the budget will be approved in time to take effect on October 1 and what economic stimulus measures may be introduced. Greater clarity is expected by mid-2026, he said.
Export prospects also remain uncertain, with December 2025 figures still unavailable and questions lingering over U.S. tariff measures. A clearer picture is expected in the first or second quarter of next year.
Bangkok International Motor Show press day is held at Impact Muang Thong Thani on March 24, 2025. The event runs from March 26 until April 3, 2025. (KHAOSOD/Yingyos Akmanachai)As a result, the FTI is concerned that vehicle production for export in 2025 may fall short of the target of 950,000 units, which could drag overall output below the full-year goal of 1.45 million vehicles. The domestic production target for 2025 stands at 500,000 units.
Production and Sales Grow in Nov.
In November, vehicle production totaled 130,222 units, up 11.06% from a year earlier, driven by a 57.49% surge in production for domestic sales to 58,633 units.
The increase was partly due to a requirement for automakers to produce battery electric vehicles to offset earlier EV imports. As a result, BEV production jumped nearly twentyfold to 9,624 units in November.
Pickup truck production rose 7.34% to 76,022 units, supported by a 44.31% increase in pickup production for domestic sales. Overall production for the domestic market in November climbed 57.49% year-on-year.
Vehicle sales also returned to growth in November, totaling 51,044 units, up 20.65% from a year earlier and 8.53% from October. Surapong attributed the rebound to interest rate cuts and measures by the Bank of Thailand to encourage lending, improving access to credit.
Toyota began delivering the Hilux Travo-e to customers on Dec. 10, 2025.Sales of passenger electric vehicles increased as prices became more affordable, while new models — including modified pickup-based passenger vehicles and electric and extended-range electric pickup trucks — also supported demand. Stronger financial documentation among pickup buyers helped prevent a further decline in pickup sales, marking the first month without a drop.
2026 Production Outlook
However, production for export in November fell 10.54% to 71,589 units, in line with a 12.22% decline in finished vehicle exports to 78,692 units. The drop followed the discontinuation of certain internal combustion engine passenger car models for export, leading to a sharp fall in ICE passenger car exports and a decline in pickup exports.
Export growth was recorded only in Asia, Australia and Oceania, while shipments of electric pickup trucks and electric passenger cars continued after being introduced earlier in the year.
Looking ahead, the FTI has set a vehicle production target of 1.45 million units for 2026, including 950,000 units for export, unchanged from 2025. Surapong said the outlook will again depend on clarity over U.S. trade measures and the outcome of next year’s election.
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