Thai car output falls 17.94% in May as Middle East conflict and weak exports hit production
Thailand’s May car output fell 17.94% as Middle East conflict and weaker Australia exports hit production, while domestic sales were lifted by BEV demand
Thailand’s vehicle production fell sharply in May 2026 as weaker exports, particularly to the Middle East, weighed on the automotive industry, according to the Federation of Thai Industries (FTI).
Surapong Paisitpattanapong, adviser to the chairman of the FTI’s Automotive Industry Club and the club’s spokesman, said total vehicle production in May stood at 114,214 units, down 17.94% from the same period last year.
The main factor was a steep fall in export production, which dropped 36.20%, as the Middle East, Thailand’s third-largest vehicle export market, was affected by war.
The decline dragged overall production in the first five months of 2026 down slightly by 1.13% to 587,759 units.
However, May also marked a significant shift in the structure of Thai vehicle production. For the first time, production for domestic sales exceeded production for export.
Output for the domestic market reached 58,520 units, up 12.78%, while production for export stood at 55,694 units.
Exports hit by Middle East conflict and new Australian rules
Exports of completely built-up vehicles totalled 59,434 units in May 2026, 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 United States 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% to 41.72 billion baht.
Domestic sales supported by EV demand
Domestic vehicle sales moved in the opposite direction, reaching 57,765 units in May 2026, up 10.60% year on year.
The key support came from the popularity of battery electric vehicles, or BEVs. Sales of electric passenger cars rose to 18,034 units, a jump of 61.19%, as consumers sought to reduce the burden of higher fuel prices.
Investment of more than 150 billion baht 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%.
The FTI said financial institutions remained cautious in approving loans because household debt was still above 80% of GDP.
EV trend remains positive
Thailand’s electric vehicle industry continued to show positive signs despite mixed production figures.
Production of BEV passenger cars slipped slightly by 3.53% to 6,185 units, but production of electric pickup trucks surged 619.51% to 295 units.
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 and exports grow
Motorcycle production also expanded in May, reaching 230,691 units, up 9.67% year on year.
Domestic motorcycle sales stood at 169,724 units, an increase of 3.08%.
Motorcycle exports remained strong, growing 21.39% to 81,396 units.
