Bangkok: Electric vehicles (EVs) continue to drive domestic car sales growth in Thailand, marking four consecutive months of increases, despite a decline in production and exports.
According to Thai News Agency, July 2025 saw a total vehicle production of 110,616 units, an 11.39% decrease compared to the previous year. Car exports also dropped to 72,439 units, a 13.27% decrease from the previous year, influenced by a shift in production priorities and global market conditions.
Mr. Surapong Paisitpatanapong, advisor to the chairman of the Automotive Industry Club and spokesman for the Federation of Thai Industries (FTI), highlighted that vehicle production in July 2025 experienced a 15.06% decrease from June 2025. This production drop was significantly attributed to a 31.80% decline in gasoline-powered passenger cars, following the discontinuation of certain models intended for export. Pickup truck production also faced challenges due to global trade uncertainties, leading to a cumulative production total of 835,331 vehicles from January to July, a 5.73% decrease compared to the same period last year.
Domestic car sales in July reached 49,102 units, a 5.84% increase. This growth was primarily driven by the rising popularity of electric vehicles, which offered a more affordable alternative to traditional gasoline vehicles. In contrast, pickup truck sales have been declining for over thirty months, attributed to stricter loan approvals linked to high household debt and a sluggish domestic economy, which grew at just 2.8% in the second quarter.
Mr. Surapong noted that July 2025 saw finished vehicle exports decrease by 17.76% from the previous month. The decline was due to changes in production models and tighter regulations on safety and energy efficiency in key export markets. Despite these challenges, the export of electric passenger cars and pickup trucks has marked a historic year for Thailand, as the country positions itself as a production hub for both gasoline and electric vehicles.
In the face of global economic uncertainties, and decreased foreign tourism impacting sectors like accommodation and food, the Thai government is urged to expedite fiscal measures to stimulate economic activity. Notably, new electric vehicle registrations in July surged by 45.51% compared to the previous year, reflecting a growing consumer shift towards more sustainable transport options.
Mr. Surapong expressed optimism for the Thai auto market’s stability for the remainder of 2025, buoyed by investment incentives and monetary policy adjustments aimed at reducing household debt burdens. Additionally, negotiations leading to a competitive 19% tariff rate on Thai exports to the US are anticipated to enhance Thailand’s export competitiveness and stimulate foreign and domestic investment, ultimately boosting economic growth and job creation.