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Bangkok, Oktober 31, 2026 – Thailand’s automotive sector stumbled in September, with car production dropping 6.08% year on year to 120,319 units.
The decline marked a sharp reversal from August’s 10.93% rise, as severe flooding disrupted factories and supply chains across the country.
Despite the production setback, domestic demand remained strong.
Vehicle sales surged 14.28% compared with the same month last year, fueled by rising appetite for electric vehicles.
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This followed an even sharper 25.59% jump in August, underscoring how government incentives and consumer preferences are accelerating Thailand’s shift toward electrification.
Exports also regained momentum, climbing 4.55% after a 2.04% fall in August.
The rebound highlights Thailand’s enduring role as a key exporter in global auto markets, even as international demand faces pressure from slowing economies in Europe and China.
The Federation of Thai Industries (FTI) confirmed that production has resumed at affected plants and reaffirmed its annual target of 1.45 million units, trimmed earlier from 1.5 million.
The industry’s ability to recover quickly from flooding demonstrates resilience, though analysts warn that recurring climate risks could pose longer-term challenges.
Thailand remains Southeast Asia’s largest auto production base, hosting global manufacturers such as Toyota and Honda.
The surge in EV sales signals a structural shift that could reshape investment priorities, with greater emphasis on battery production and charging infrastructure.
Still, uncertainties persist. Export competitiveness will depend on stable supply chains and sustained global demand, while domestic growth hinges on continued policy support.
The government’s excise tax cuts and EV incentives have provided a cushion, but the industry must navigate both environmental disruptions and economic volatility.
September’s figures capture a dual narrative short term disruption from floods and long term momentum from electrification.
As Thailand pushes to meet its 1.45 million unit production target, the balance between resilience and transformation will define the trajectory of its auto industry in the months ahead.
