Bangkok: Car production in May 2025 reached 139,186 units, marking a 10.32% growth from the previous year, as reported by the Federation of Thai Industries (FTI). This growth is the first in 21 months and is largely attributed to a significant increase in battery electric vehicle (BEV) production, which surged by 641.16%, alongside a rise in domestic sales for the second consecutive month.
According to Thai News Agency, Mr. Surapong Paisitpatanapong, Advisor to the Chairman of the Automotive Industry Group and Spokesperson of the Automotive Industry Group, FTI, highlighted that the increase in production was also due to a 130.49% rise in plug-in hybrid electric vehicle (PHEV) production. Consequently, the production of passenger cars for domestic sales grew by 63.88%, with production of PPVs for domestic sales increasing by 138.65%. However, the total car production for January to May was down by 7.82% compared to the previous year.
Domestic car sales in May totaled 52,229 units, up 10.67%, driven by a notable increase in sales of BEV, PHEV, and internal combustion engine passenger cars, thanks to more affordable prices. Despite this, pickup truck sales fell by 24.84% due to stricter loan approvals amidst high household debt and economic challenges, including low private investment and a weak domestic economy.
Mr. Surapong also noted that BEV registrations for the first five months of the year reached 53,955 units, with manufacturers accelerating production to meet EV3.0 and 3.5 measures. However, he cautioned about the potential economic impacts of unresolved political conflicts, the 2026 budget passage, and the Thai-Cambodian border conflict. The outcome of negotiations with the United States on reciprocal tariffs, which could see a tax reduction from 36%, remains a critical factor for the industry.
The export of finished cars saw an increase of 23.34% from the previous month, totaling 81,071 units, although this was a 9.20% decrease from May 2024. The decline was due to the suspension of some passenger car models for export to the United States and Europe amid stricter regulations on driving assistance devices. However, exports of pickup trucks and HEV cars saw increases, especially in the Australian and Middle Eastern markets. Global uncertainties, particularly U.S. import taxes and regional conflicts, continue to pose risks to car and parts exports.
A proposed old car exchange project by the Ministry of Finance could further boost domestic sales if approved by the Cabinet. The project targets around 2 million 20-year-old cars, with conditions on taxation and loan approvals still under discussion. A proposed 5 billion baht fund could support the project, potentially stimulating sales of 50,000 to 100,000 cars.