Bangkok: The Federation of Thai Industries (FTI) has announced a reduction in its 2026 vehicle production target to 1,450,000 units, citing a decline in export performance as a primary concern. According to Thai News Agency, the FTI has identified the ongoing war and trade protectionist measures as significant factors contributing to the sluggish export numbers. The organization has recommended that the government expedite large-scale economic stimulus projects to boost domestic purchases.
Mr. Surapong Paisitpatthanapong, advisor to the chairman and spokesperson of the Automotive Industry Group of the FTI, disclosed that car production in June stood at 120,391 units, marking a 7.55% decrease. The decline is attributed to a slowdown in exports, particularly to the Middle East, where exports fell by 38.35% due to uncertainties from the war and the closure of shipping routes through the Strait of Hormuz. Additionally, Thailand is facing severe competition from Chinese electric cars and stricter emission standards abroad. Consequently, the FTI has revised its annual production target downward by 50,000 units, focusing the cut on export production. The new 2026 target now stands at 1.45 million units, reflecting a 3.33% decrease from the original target, with export production reduced to 900,000 units. In contrast, domestic sales production remains at 550,000 units, and motorcycle production is increased to 2.05 million units, a 2.50% rise from the initial target.
Despite these challenges, the domestic market is showing signs of recovery. June saw a 17.26% increase in sales, reaching 58,724 units, driven largely by a surge in demand for electric vehicles (EVs) amid rising oil prices. BEV sales in June soared by 140.47%, totaling 22,275 units, which contributed to over 104,000 EV sales in the first half of the year.
However, the pickup truck market continues to struggle, with June sales approximately 10,800 units, a 3.17% decrease due to continued tight lending conditions by financial institutions over the past three years. The FTI is calling for urgent government action to implement large-scale economic stimulus projects to enhance purchasing power.