31 October 2026 Published by Silicon Valley Innovation ไทย

Thai Industry Wire

Factories, energy, freight and property in Thailand

Auto parts

Thai car output seen down 3.3% as parts makers seek help

Domestic sales have risen for six straight months, but exports are soft and 10 industry associations want imported EVs taxed at 32% or more.

By Thai Industry Wire Desk · · 3 min read

อ่านภาษาไทย

White robotic arms working on a bare steel car body on an assembly line, with motion blur on the arms at the edges
A car body on a robotic assembly line, shown in a factory exhibit in Japan; illustrative, not a Thai plantPhoto by Lilian Do Khac on Unsplash

Thailand built 124,646 vehicles in August 2026, up 10.93% on a year earlier, yet the Federation of Thai Industries (FTI) still projects a 3.33% fall in output for the full year, Trading Economics reported. The FTI cites weaker export demand amid hostilities in the Middle East.

Domestic sales tell the opposite story. They rose 25.59% to 59,808 units in August, the sixth monthly gain in a row. Exports fell 2.04%.

A year of swings

Output was 1.455 million vehicles in 2025, down 0.9%, Thailand Business News reported. The industry then aimed for 1.5 million in 2026, a 3% rise, before the FTI cut its view to a decline.

The monthly numbers explain why. M Report's tracker of FTI data shows January at 118,386 units, up 10.53%. May fell 17.94% to 114,214, with export production down 36.20%. June fell 7.55% to 120,391. Reuters data carried by NST put July at 117,383, up 6.12%, with exports up 2.39% after a 7.45% drop in June.

Reports of the FTI's monthly figures have appeared in the last week of the following month all year. On that pattern, September's numbers are due before the end of October.

What 2025 exports showed

The FTI's 2025 export data, summarised by M Report, shows vehicles and parts moving differently.

Total automotive exports were 947.03 billion baht, down 7.25%. Completely built-up vehicle exports were 935,750 units, down 8.19%. Combustion-engine passenger cars fell 36.11% to 159,851 units, while hybrid passenger cars rose 11.43% to 55,091. Battery EVs appeared as a new export line at 12,695 cars.

Parts held up. Exports of other auto parts reached 194.80 billion baht, up 1.83%. Engines rose 4.84% to 37.15 billion baht, and accessories and spare parts edged up 0.67% to 26.84 billion baht.

Why suppliers are lobbying

A coalition of 10 associations, including the Thai Auto-Parts Manufacturers Association and the Electric Vehicle Association of Thailand, represents more than 1,500 operators. On 13 May 2026 The Nation reported its emergency proposals:

  • An excise tax of at least 32% on imported EVs, opening a 30-point gap with the 2% paid by locally built EVs.
  • At least 80% local parts content by value, with a revised way of calculating it.
  • Imports at the current 10% rate, capped at 10% of production volume, for makers that invest in Thai production.

The group says building a car in Thailand costs 30% to 40% more than importing it from China. It called this the industry's most serious crisis in the shift to electric vehicles.

The Nation's 20 August report puts the stakes in jobs: more than 800,000 people work in the sector. It also notes that Chinese imports enter at 0% customs duty under the ASEAN-China free trade agreement.

What the government has agreed so far

The Finance Ministry said in August, The Nation reported, that it would lower excise rates for carmakers that run real Thai factories and use local materials and parts. Imports sold without Thai investment stay on higher rates.

On 10 September the EV Board agreed a tiered structure in principle. It also set up a sub-committee on modern automotive manufacturing and parts, chaired by the industry minister. Thansettakij reported on 8 October that the cabinet has acknowledged the principle and that the Excise Department must now refine it. The same report, citing FTI data for January to July, said battery EVs held 30.88% of the domestic market and that battery EV imports reached 63%.

For a supplier, the structure rewards what suppliers sell: Thai content. The open question is the threshold that separates the middle tier from the lowest. No source has published one.

The date to watch is the cabinet's decision on the Excise Department's rate table.

FAQ

How many vehicles did Thailand produce in 2025?

About 1.455 million, a fall of 0.9%, according to Thailand Business News.

How did auto parts exports do in 2025?

Other auto parts exports rose 1.83% to 194.80 billion baht while total automotive exports fell 7.25%, according to FTI data summarised by M Report.

What are Thai parts makers asking for?

A coalition of 10 associations asked for at least 32% excise tax on imported EVs and at least 80% local parts content by value, according to The Nation.

Sources

auto productionauto exportsparts suppliersFTIexcise taxTAPMA

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