Thailand’s Auto Industry Hit by Floods and Economic Slowdown
Thailand’s automotive sector faces significant headwinds as severe southern floods threaten domestic car sales and delay economic recovery, according to the Federation of Thai Industries (FTI).
Key Takeaways
- Severe floods in southern Thailand threaten domestic car sales and economic recovery
- Industry maintains 2025 target of 1.45 million vehicles despite challenges
- BEV production surged 1,265% in October while pickup segment remains weak
Industry Response and Monitoring
Surapong Paisitpatanapong, vice-chairman of FTI and spokesman for its Automotive Industry Club, confirmed the group is closely monitoring the flood situation.
“The massive floods in the South have raised concerns, and we hope conditions improve quickly,” he said.
The club will meet with global carmakers this Wednesday to discuss potential support measures for affected dealers, businesses and consumers.
Production Targets and Economic Outlook
Despite the dual challenges of floods and economic slowdown, the industry maintains its 2025 production target of 1.45 million vehicles – 950,000 for export and 500,000 for domestic sales.
Mr Surapong expressed hope that new government stimulus measures, particularly the “Khon La Khrueng Plus” co-payment scheme, would boost economic confidence and consumer purchasing power.
October Production Data Shows Mixed Results
October vehicle production increased 14.1% year-on-year to 135,685 units, largely driven by battery electric vehicle manufacturers rushing to meet EV3.0 scheme requirements.
BEV production skyrocketed 1,265% to 9,393 units, primarily for domestic supply. However, overall production for January-October declined 2.84% to 1.21 million units.
Sales Performance and Segment Weakness
Domestic sales showed resilience with a 24.7% increase in October and 3.92% growth over ten months to 495,001 vehicles. BEVs led this growth while internal combustion engine pickups continued to struggle.
“The pickup segment remains fragile,” Mr Surapong noted, adding that a 5-billion-baht government loan guarantee program has yet to show results.
