Thai Enquirer
Thailand’s May auto output falls nearly 18% as Middle East conflict hits exports
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Thailand’s automobile production fell 17.94% year-on-year in May to 114,214 vehicles as exports slumped amid the conflict in the Middle East, although domestic sales continued to recover on stronger demand for electric vehicles, the Federation of Thai Industries (FTI)’s Automotive Industry Club said on Monday.
Key facts
- Vehicle exports dropped 26.69% from a year earlier to 59,434 units, while production for export declined 36.2%
- Total vehicle production during the first five months of 2026 slipped 1.13% from a year earlier to 587,759 units.
- Overall exports of vehicles, engines, auto parts and motorcycles were valued at 70.03 billion baht (about US$1.89 billion), down 14.23% from a year earlier.
- However, it said domestic demand could improve further, supported by higher investment, stronger exports, continued growth in EV sales, the Bank of Thailand’s upgraded 2026 GDP growth forecast of 2.3%, and government stimulus measures.
- Exports to the Middle East fell 66.14%, while shipments to Australia and Oceania, another key market, dropped 37.18% due to increasing competition from Chinese electric vehicles and stricter vehicle emissions standards.
- The industry produced 55,694 vehicles for export in May, down 36.2% year-on-year, while production for the domestic market rose 12.78% to 58,520 units, marking the first time domestic-oriented production exceeded export production.
Summary
Vehicle exports dropped 26.69% from a year earlier to 59,434 units, while production for export declined 36.2%. The FTI said the Middle East, Thailand’s third-largest vehicle export market accounting for 21% of exports last year, was severely affected by the regional conflict, leading to sharp declines in shipments of passenger cars and pickup trucks.
Exports to the Middle East fell 66.14%, while shipments to Australia and Oceania, another key market, dropped 37.18% due to increasing competition from Chinese electric vehicles and stricter vehicle emissions standards.