Thailand’s Car Production Drops as Federation Proposes 5-Billion-Baht ‘Quick Win’ Fund to Support Automotive Industry

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Car Production in Thailand Declines in August 2025

The Federation of Thai Industries (FTI) reported that Thailand’s car production totaled 112,366 units in August 2025, a slight increase of 1.58% compared to July but a year-on-year decline of 6.11%. The drop was driven mainly by a 10.67% fall in export-oriented production, especially passenger cars, which decreased 21.27% due to stricter safety regulations and the discontinuation of certain models. Pickup truck production for export also fell by 6.36% as trading partners tightened carbon emission standards.

Domestic Production Shows Modest Growth

Despite weaker exports, domestic production rose 4.11% in August, boosted by electric vehicle (EV) production offsetting imported EVs from 2022–2023. Between January and August 2025, total vehicle production reached 947,697 units, down 5.77% compared with the same period in 2024.

Domestic Sales and Export Performance

Domestic car sales in August 2025 reached 47,622 units, down 3.01% from July but up 5.38% year-on-year, driven by strong EV sales totaling 9,246 units (+26.62% YoY). Pickup truck sales continued to decline for the second consecutive year due to tighter loan approvals and weak purchasing power.

Exports of completely built units (CBU) totaled 71,179 units, down 1.74% month-on-month and 17.30% year-on-year, with sharp declines in both oil-fueled pickup trucks (-14.65%) and passenger cars (-35.09%).

EV Registration Numbers Continue to Climb

Battery electric vehicles (BEVs) registered 11,486 new units in August 2025, up 30.46% from last year, bringing total BEV registrations to 318,574 units (+59.20% YoY). Hybrid electric vehicles (HEVs) and plug-in hybrids (PHEVs) also showed steady growth, with HEV registrations at 562,894 units (+28.66% YoY) and PHEVs at 76,720 units (+26.96% YoY).

FTI Pushes for a 5-Billion-Baht ‘Quick Win’ Fund to Support the Industry

FTI advisor Surapong Paisitpatanapong proposed that the new government, led by Prime Minister Anutin Charnvirakul, establish a 5-billion-baht “Quick Win” fund to guarantee losses from repossessed pickup trucks (capped at 50,000 baht per vehicle). The scheme aims to incentivize financial institutions to extend more loans, targeting at least a 30% increase in pickup truck sales compared to last year.

Economic Benefits of the Quick Win Fund

The proposed fund could generate more tax revenue than it costs, with potential increases of 2.4 billion baht in excise and VAT collections, along with higher corporate tax from suppliers. Industries such as tire manufacturing, glass, air-conditioning systems, and exhaust pipes would benefit from increased demand, boosting production and employment across the supply chain.

Stimulating Economic Growth and Investor Confidence

The Quick Win program is designed to stimulate Thailand’s automotive sector before it reaches a critical point. By ensuring stronger pickup truck sales and expanding EV adoption, the initiative could strengthen supply chains, reduce household debt, and attract more domestic and foreign investment, creating a positive growth cycle for Thailand’s economy.

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