Thailand Car Sales Soar 25.59% in August

Thailand's domestic vehicle sales surged 25.59% year-on-year to 59,808 units in August 2026, accelerating from a 20.07% increase in July, according to data from the Federation of Thai Industries (FTI). The strong performance marked the sixth consecutive month of growth, highlighting the continued recovery in domestic demand. Vehicle production rose 10.93% from a year earlier to 124,646 units, following a 6.12% gain in July. The government recently announced plans to reduce excise tax rates for automakers that establish production facilities in Thailand, a move aimed at boosting local manufacturing and increasing the use of domestically sourced parts and raw materials. Still, the FTI continues to project a 3.33% decline in total vehicle production for 2026, citing weaker export demand amid ongoing hostilities in the Middle East. Reflecting these challenges, Thailand's vehicle exports fell 2.04% year-on-year in August, reversing a 2.39% increase recorded in the previous month.

Thailand’s domestic car sales surged 20.07% year-on-year to 59,198 units in July 2026, accelerating from a 17.26% increase in June, according to the Federation of Thai Industries (FTI). The gain marked the fifth consecutive month of growth, underscoring a continued recovery in domestic demand. Vehicle production rose 6.12% from a year earlier to 117,383 units, rebounding from a 7.55% decline in the previous month. Despite the improvement, the FTI lowered its 2026 vehicle production forecast to 1.45 million units from 1.50 million, citing weaker export performance in the first half of the year. The industry group attributed the downward revision to persistent global headwinds, including lingering Middle East-related disruptions, ongoing trade barriers, intensifying competition from Chinese electric vehicle manufacturers, and tighter emissions regulations in key export markets. Meanwhile, Thailand's exports increased 2.39% year-on-year in July after falling 7.45% in the previous month.

Thailand’s domestic car sales climbed 17.3% year-on-year to a five-month high of 61,244 units in June 2026, accelerating from 10.6% in the previous month, according to the Federation of Thai Industries (FTI). It marked the fourth consecutive month of growth. Meanwhile, car production fell 7.6% from a year earlier to 120,391 units, easing from an 11.4% drop in May. The government is reviewing a 24 billion baht ($714 million) scheme to replace up to 80,000 ageing transport vehicles with EVs and is considering expanding incentives to cover all EV purchases, aiming to support the energy transition and revive the auto sector. Looking ahead, the FTI expects vehicle output to rise 3% to 1.5 million units in 2026 after slipping 0.9% to 1.455 million units last year. Thailand's exports surged 20.8% year-on-year in June, with shipments to the US, its largest export market, jumping 44.3%, while exports to China rose 4.9%.