Bangkok (VNA) - Thailand's vehicle production fell 17.94% year-on-year to 114,214 units in May 2026, according to the Federation of Thai Industries (FTI), as exports declined amid tensions in the Middle East and weakening demand in several major markets.
Surapong Paisitpattanapong, adviser to the chairperson of the FTI’s Automotive Industry Club, said the export production dropped 36.20% in May. The decline dragged overall production in the first five months of 2026 down slightly by 1.13% to 587,759 units.
Exports of completely built-up vehicles totalled 59,434 units in May, down 26.69% from the same month last year.
The FTI pointed to two major negative factors behind the decline. The first was the Middle East market, where exports fell 66.14% because of the conflict between the US and Iran. The second was Australia and Oceania, where exports dropped 37.18% as the market was affected by stricter carbon control regulations and aggressive expansion by electric vehicles from China.
As a result, the value of completely built-up vehicle exports in May fell 24.36% year-on-year to 41.72 billion THB (1.28 billion USD).
Domestic vehicle sales moved in the opposite direction, reaching 57,765 units last month, up 10.6% year on year.
The key support came from the popularity of battery electric vehicles, or BEVs. Sales of electric passenger cars rose 61.19% to 18,034 units, as consumers sought to reduce the burden of higher fuel prices.
Investment of more than 150 billion THB in the first five months of the year, together with the government’s economic stimulus measures, also helped strengthen confidence.
However, the pickup truck market, a core segment of Thailand’s automotive industry, expanded by only 0.21%.
Thailand’s electric vehicle industry continued to show positive signs despite mixed production figures. New registrations of BEVs in May reached 21,619 units, up 55.14%.
This brought the cumulative number of registered BEVs nationwide to 468,757 units as of May 31, 2026.
Motorcycle production also expanded in May, reaching 230,691 units, up 9.67% year on year./.
