Thailand's Automotive Industry Under Pressure as Production Hits Five-Year Low

JAKARTA, KOMPAS.com – Thailand’s automotive industry is reportedly facing significant pressure, driven by weakening exports due to Middle East conflicts and rising energy costs.

The Federation of Thai Industries (FTI) recorded a 0.44% year-on-year decline in car production to 103,794 units in April 2026, the lowest level in five years. According to Reuters on Wednesday (27 May 2026), this follows a 2.69% production growth in March 2026.

Export performance reflected this trend, with car exports dropping 8.43% to 60,190 units in April. However, the domestic market showed a different trend: domestic sales rose 2.54% to 48,394 units, boosted by high vehicle orders during the Bangkok Motor Show.

Thailand is known as the largest automotive production hub in Southeast Asia (ASEAN) and a key export base for global manufacturers. Major brands such as Toyota and Honda have long used Thailand as a regional production base.

Despite the current pressures, the FTI maintains its 2026 production forecast, expecting a 3% increase to 1.5 million units. In comparison, total production for 2025 fell 0.9% to 1.455 million units, though Thailand remains the region’s top producer after Indonesia, which produced 1.18 million units.