Bangkok: EVs boosted MPI growth in September, returning to 1.02%. The “Half-Half Plus” scheme is expected to boost industrial GDP by 0.1%.
According to Thai News Agency, the Office of Industrial Economics (OIE) revealed that the Industrial Production Index (MPI) for September 2025 stood at 94.56, marking a 1.02 percent increase year-on-year. This growth was largely driven by a resurgence in the automotive industry and various government economic stimulus measures. The “Half-Half Plus” program is anticipated to enhance industrial GDP by approximately 0.1 percent, contributing around 15 billion baht to the economy.
Director-General of the OIE, Mr. Suphakit Boonsiri, stated that the September 2025 MPI showed a year-on-year increase, highlighting a capacity utilization rate of 58.13 percent due to a rise in electric vehicle sales. Car production expanded by 5.57 percent year-on-year. Domestic tourism also saw growth, aided by initiatives like the “Tour Thailand Half-Half 2025” project and economic stimulus measures including electricity tariff reductions and the “You Fight, We Help” Phase 2 project. However, the overall industrial production index for the third quarter of 2025 showed a 2.40 percent decrease compared to the previous year, with a capacity utilization rate of 57.39 percent.
The industrial sector is facing challenges such as concerns about US international trade policy, with the US reviewing and imposing additional import duties on various Thai products. The strengthening baht, due to capital inflows and declining US interest rates, is affecting the competitiveness of Thai exports. Industries with a low dependency on imported raw materials and high export ratios are particularly impacted. Moreover, the decline in international tourism has affected related industries including frozen foods, luggage, and alcoholic beverages.
Thailand’s industrial economic warning system for October 2025 signals caution domestically, especially in private investment and confidence, along with a decline in orders. Internationally, there is a slight recovery in the ASEAN manufacturing sector, although the European Union’s manufacturing remains sluggish.
The “Half-Half Plus” project, approved by the Cabinet, aims to stimulate the economy in late 2025. It covers a range of goods and services, intending to positively impact demand for related industrial products. Mr. Suphakit noted that the OIE projects a 0.1 percent increase in industrial GDP, amounting to approximately 15 billion baht, due to this measure. The policy’s impact could be greater with additional government actions to boost domestic demand.
Key industries positively impacting the September 2025 production index include automotive, which grew by 5.57 percent year-on-year, driven by hybrid and electric vehicles. Petroleum refining saw a 3.56 percent increase due to jet fuel, diesel, and gasohol 95 demand. Electronic components and circuit boards expanded by 9.40 percent due to growing market demand for electronic products.
Conversely, other general-purpose machinery saw a 23.00 percent contraction, attributed to market contractions and cheap imports. Coffee, tea, and herbal powders contracted by 85.15 percent, due to a halt in instant coffee production and foreign imports. Concrete, cement, and plaster products contracted by 8.00 percent, affected by a slowdown in construction amid economic downturns and stricter credit conditions.