Thai vehicle production falls; FTI urges government to establish fund to support pickup sales
Thai automotive production and exports drop in August 2025; FTI proposes 5-billion-baht fund to boost pickup sales and safeguard lenders.
The Automotive Industry Club of the Federation of Thai Industries (FTI) on Tuesday reported on August 2025 production, domestic sales, and exports of cars and motorcycles in Thailand:
1. Production: Total vehicle production in August 2025 reached 112,366 units, up 1.58% from July but down 6.11% from August 2024 due to a 10.67% decline in exports. Domestic production rose 4.11%, driven by increased electric vehicle (EV) output replacing imported EVs from 2022-2023. From January to August 2025, total production was 947,697 units, a 5.77% decrease from the same period in 2024.
2. Exports: August 2025 exports totalled 73,956 units, or 65.82% of total production, down 10.67% from August 2024. From January to August, 623,069 units were exported, down 9.24% year-on-year.
3. Domestic sales: August 2025 domestic sales reached 38,410 units (34.18% of total production), up 4.11% from August 2024. January-August sales were 324,628 units (34.25% of total), up 1.69% from 2024.
4. Domestic market: August sales totalled 47,622 units, down 3.01% from July but up 5.38% from August 2024. EV sales reached 9,246 units, up 26.62% year-on-year. Pickup trucks sold 10,960 units, down 10.92%, continuing a two-year decline due to stricter credit approvals and weak buyer financial capacity.
5. Exports: Fully built vehicles exported in August 2025 numbered 71,179 units, down 1.74% from July and 17.30% year-on-year, with declines in petrol pickups (-14.65%) and passenger cars (-35.09%) amid stricter carbon emission regulations in some countries. Total export value for vehicles, engines, parts, and components in August was THB 67,917.28 million, down 8.07% from August 2024. From January–August 2025, 602,975 units were exported, down 12.44% year-on-year.
FTI Proposal:
Surapong Paisitpattanapong, spokesperson for the FTI Auto Club, said the association has proposed that the government establish a THB 5-billion fund to guarantee losses on repossessed pickup trucks. The fund would cover actual losses up to THB 50,000 per vehicle for financial institutions. In return, banks must increase loans to boost pickup sales by at least 30% over last year.
The policy is expected to increase government revenue through excise and VAT on pickups, corporate income tax on suppliers in the automotive supply chain (tyres, air conditioners, exhaust systems, etc.), and personal income tax for bank staff, insurance employees, and vehicle sales personnel.
By stimulating investment, employment, and wages, the plan aims to increase household income, reduce household debt, and boost spending on consumer goods, dining, and travel, thereby injecting significant liquidity into the economy.
