Thailand’s Car Production Plunges: What’s Behind the Drop?

Jakarta, CNBC Indonesia — Thailand’s car production fell in September 2026, even as sales in the domestic market and exports recorded growth.

The production slowdown followed flooding that disrupted the country’s automotive industry the previous month. Reuters reported on Tuesday (27 October 2026) that the Federation of Thai Industries (FTI) put September car production at 120,319 units, down 6.08% from the same period last year.

The decline reversed August 2026’s year-on-year growth of 10.93%. Thailand is South-east Asia’s largest automotive production hub and an export base for several global carmakers, including Toyota and Honda.

Despite the drop in production, the FTI maintained its target of producing 1.45 million cars in 2026. The target had been cut in July from an initial forecast of 1.5 million units.

Meanwhile, domestic car sales in Thailand rose 14.28% year on year in September. However, this was slower than the 25.59% increase recorded in August.

Surapong Paisitpattanapong, spokesman for the FTI’s Automotive Industry Club, said the rise in domestic sales was driven by electric vehicles (EVs). Thai car exports grew 4.55% year on year in September, reversing August’s 2.04% decline.

The FTI said carmakers in Thailand had resumed production after floods the previous month disrupted operations at automotive factories and parts suppliers. The disaster also killed at least 80 people.

The figures point to mixed conditions for Thailand’s automotive industry: production remains under pressure, while domestic demand and exports are beginning to strengthen.