Photo courtesy of KhaoSod English

 

Thailand’s automotive sector is grappling with significant challenges this year, with car production dropping by 5.73% in the first seven months compared to last year. This decline spells trouble for employment in manufacturing plants across the country.

 

Between January and July, Thailand produced 835,331 vehicles. July alone saw 110,616 units, an 11% decrease from the previous year, as reported by the Federation of Thai Industries (FTI). Surapong Paisitpatanapong, vice-chairman of the FTI and Automotive Industry Club spokesperson, noted that this reduction stems from a mix of factors, including complex US tariff policies and prevailing debt issues.

 

Car exports took a tumble as trading partners hit pause, awaiting clearer US trade policies. Compounding this, alterations in vehicle models contributed to the downturn. As a result, exports shrank by 11%, totalling 531,796 units.

 

The automotive sector is also being squeezed by stringent lending practices. Banks and financing firms, wary of non-performing loans due to high household debt, have clamped down on auto loans. This has inevitably dented car sales.

 

Manufacturers responded by scaling back production, with some workers clocking in just three to four days a week. Consequently, employees have been receiving only 75% of their usual salaries since the previous year. The Bangkok Post highlights that the pickup segment, heavily reliant on a network of small and medium-sized enterprises, has been particularly hard hit. Pickup production has declined for 30 consecutive months, with over 200,000 fewer units manufactured.

 

Despite government efforts to stimulate the sector, progress has been sluggish. A Finance Ministry initiative, featuring a 5 billion baht (approximately 138 million USD) fund to support pickup loans for SMEs, has resulted in just 100 vehicles sold under the scheme.

 

Amidst these challenges, there are some signs of hope. July’s sales of all vehicle types rose by nearly 6% to 49,102 units. This uptick was driven largely by increased purchases of battery electric vehicles and plug-in hybrid EVs, indicating a shift in consumer interest towards more sustainable options.

 

The Thai automotive industry is navigating a complex landscape of international trade issues and domestic financial challenges. While the road ahead remains fraught with obstacles, emerging trends in electric vehicles may offer a path towards revitalisation and growth.

 

  Adapted by ASEAN Now from The Thaiger 2025-08-26

 

6 minutes ago, snoop1130 said:

A Finance Ministry initiative, featuring a 5 billion baht (approximately 138 million USD) fund to support pickup loans for SMEs, has resulted in just 100 vehicles sold under the scheme.

 

Five billion used* to promote and support the sale of just 100 vehicles......yikes!!!!

 

*I assume it is sitting in the government coffers somewhere...for now.

16 hours ago, snoop1130 said:

Manufacturers responded by scaling back production, with some workers clocking in just three to four days a week. Consequently, employees have been receiving only 75% of their usual salaries since the previous year. The Bangkok Post highlights that the pickup segment, heavily reliant on a network of small and medium-sized enterprises, has been particularly hard hit. Pickup production has declined for 30 consecutive months, with over 200,000 fewer units manufactured.

Such a shame Thailand doesn't have something of it's own to fill the gap.

4 minutes ago, hotchilli said:

Such a shame Thailand doesn't have something of it's own to fill the gap.

 

But they have, rice and fruits they could export. Cars are too complicated, they can't even drive them.

That's a long read, but the first 7 months had the same tariffs as last year.

 

Deflecting the problem as usual.

Not surprising. EV's from China are getting around 10-20% of most markets outside US and perhaps EU so you would expect ICE exports to take a hit.

Can't see any recovery in the future given the excess EV manufacturing capacity in China

Strange only last week it was up make your mind up

3 hours ago, NedR69 said:

That's a long read, but the first 7 months had the same tariffs as last year.

 

Deflecting the problem as usual.

I also don’t see what USA tariffs have to do with Thai car exports. 
 

My understanding was that cars made/assembled in Thailand were destined for the local market and other SE Asia markets. Acting as a SE Asian hub no less.

 

I’m a bit doubtful that any of the cars would make their way to the USA. If that’s the case, why would USA tariffs apply?

 

Maybe I’m wrong and Thailand is also a North American automotive hub. 🤷‍♂️

4 hours ago, watchcat said:

 

But they have, rice and fruits they could export. Cars are too complicated, they can't even drive them.

If they lose those export markets to competitors they're solely reliant on the working girls...

much like the past years

10 hours ago, hotchilli said:

If they lose those export markets to competitors they're solely reliant on the working girls...

much like the past years

They lose export because of the high teflon baht.Vietnam took over the rice exort from Thailand.

Now India will empty the rice storage and sell 11000 ton to a cheap price.

maybe,,   if Thailand has a chance ..   tomorrow the 29th   the way will be paved for a new government to take form

and the "tax the poor and give to the rich WEF ..   you will own nothing and be happy scheme will be forever erased from this Kingdom !

On 8/26/2025 at 4:06 PM, snoop1130 said:

A Finance Ministry initiative, featuring a 5 billion baht (approximately 138 million USD) fund to support pickup loans for SMEs, has resulted in just 100 vehicles sold under the scheme.

 

So, each car cost USD$1.38 million?

 

Seems legit.

Guess it's better for their image to blame tariffs that didn't take effect yet, than to admit, EV or simply world economics is the blame for less demand.