Thailand’s Automotive Output Revives—With a Dash of Electric Ambition
Thailand’s automotive sector is shifting gears into recovery mode. Despite early-year setbacks, recent data suggests a promising rebound—particularly in June—thanks to rising demand for electric and hybrid models, export markets regaining traction, and steadfast governmental support.
June Marks the Turn
In June 2025, Thailand achieved a noteworthy 11.98% year‑over‑year increase in car production, reaching 130,223 units, according to the Federation of Thai Industries (FTI). This marks the second consecutive month of growth, hinting at a more resilient auto sector regaining operational momentum.
Additionally, the Thai Manufacturing Production Index (MPI) climbed 0.58% year-over-year to 97.35 points in June, buoyed by the recovering car market, a boost in exports, and government stimulus efforts. Though the MPI dipped 3.47% from May, the upward trend in automotive production remains a bright signal.
The First Half: A Mixed Bag
However, the broader picture reveals a still‑fragile recovery. For the first half of 2025, total vehicle production fell 4.8% year-on-year, to 724,715 units. This mild contraction reflects the tough baseline set in 2024, when production slumped amid sluggish demand and tight financing conditions.
Exports weren’t spared either. June exports dropped by 1.1% year-on-year to 88,085 units, and totaled 459,357 units in the first half—a decline of 11.5%. These numbers reflect ongoing challenges—including compliance with evolving international safety and emission standards that have impacted several vehicle model lines.
Resilience Through Hybrid and EV Demand
One engine driving June’s uptick was the growing domestic and export demand for hybrid and battery‑electric vehicles. According to the Office of Industrial Economics, car production in June rose a robust 17% year-over-year, powered in part by this green demand boost.
Moreover, new BEV passenger-car registrations surged: 57,289 units in the first half of 2025, a 52% increase year-on-year, accounting for over 15% of all new car registrations—a regional record. Those figures bode well for industry transformation and long-term market shift.
From Slump to Momentum
It’s worth remembering how sharp the slump was earlier in the year: vehicle production plunged 13.6% in February, and by March was still down over 6% to 129,909 units—highlighting the steep hill manufacturers had to climb. The June turnaround thus represents both a relief and a foundation to build upon.
Encouragingly, forecasts made in late 2024 anticipated modest growth —around 4.3%—in 2025, lifting off a diminished base in 2024. The latest figures suggest that while gains may be uneven, the trajectory could be stabilizing.
Looking Ahead: Balanced Optimism
Thailand’s automotive engine may be sputtering a bit, but it’s not yet stalling. June’s rebound exemplifies the industry’s resilience—underpinned by strengthening hybrid/EV demand, eased manufacturing indexes, and continued export engagement.
The underlying message is clear: by preserving the strengths of its traditional auto infrastructure while embracing electrified innovation, Thailand is poised to edge its way back onto a path of sustainable production and export leadership. With smart policy, infrastructure support, and investment, the kingdom’s industrial heart could well be poised for another lap of growth.
