Nation Thailand
Thailand confident Toyota will keep production base despite regional competition
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◌ Single Source
Thailand’s economic planning agency is confident that Toyota will not relocate its production base from the country, citing a well-established automotive supply chain developed over more than three decades.
Key facts
- Passenger car exports contracted by 42.4% in the second quarter of 2026.
- Danucha Pichayanan, secretary-general of the National Economic and Social Development Council (NESDC), was responding to Indonesia’s efforts to attract greater investment from major carmakers, including Toyota, as it seeks to strengthen
- The pressures caused overall automotive production in Thailand to fall by 7.2% in the second quarter, while capacity utilisation declined to 57.47%.
- Thailand’s one-tonne pick-up segment, one of the country’s leading automotive products, remained strong and expanded by 50%.
- US-Iran impasse sends Brent above US$90 while Hormuz traffic plunges
Summary
Danucha Pichayanan, secretary-general of the National Economic and Social Development Council (NESDC), was responding to Indonesia’s efforts to attract greater investment from major carmakers, including Toyota, as it seeks to strengthen its automotive industry and compete with Thailand as a regional production hub.
Although Toyota already invests in and manufactures certain vehicle models in Indonesia, Danucha said Thailand continued to benefit from longstanding economic ties with Japan.