Thailand’s car production rose 10.93% year-on-year in August to 124,646 units, accelerating from a 6.12% increase in July as stronger domestic demand supported Southeast Asia’s biggest automotive manufacturing hub, Reuters reported.
Domestic vehicle sales surged 25.59% from a year earlier during the month, extending July’s 20.07% increase, according to the Federation of Thai Industries (FTI).
Exports, however, remained a weak spot, falling 2.04% year-on-year in August after rising 2.39% in July.
The mixed performance comes after the FTI in July revised its full-year 2026 production outlook to a 3.33% contraction, reversing an earlier forecast for 3% growth as Middle East hostilities weighed on export prospects.
Thailand’s government is also seeking to strengthen domestic automotive manufacturing, announcing plans last month to cut excise tax rates for automakers that establish production facilities in the country and increase their use of locally sourced parts and raw materials.
Thailand is Southeast Asia’s largest automotive production centre and a key export base for global manufacturers including Toyota and Honda.
