BANGKOK — Thailand’s domestic vehicle sales climbed 5.84% to 49,102 units in July 2025, boosted by a 36.12% jump in electric vehicle sales to 9,304 units as lower prices attracted more buyers, according to Surapong Paisitpattanapong, advisor to the chairman and spokesperson of the Automotive Industry Group at the Federation of Thai Industries (FTI).

However, Thailand’s automotive production dropped 11.39% year-on-year to 110,616 units in July 2025, with gasoline passenger cars seeing the steepest decline due to manufacturers discontinuing certain export models for vehicle transitions.

The production decline was driven primarily by export manufacturing, which fell 15.35% to 74,100 units, corresponding with a 13.27% drop in actual exports to 72,439 units amid global trade uncertainties. Several gasoline passenger car models were discontinued as manufacturers prepare for significant model changes.

Historic EV Milestone

Despite the overall decline, Thailand achieved a historic milestone by exporting 167 electric passenger cars and pickup trucks in July – marking the first year Thailand has successfully exported EVs as the government and private sector collaborate to establish the country as a production base for both conventional and electric vehicles targeting trading partners with varying policies and infrastructure readiness.

“We’re on the right track promoting electric vehicle production and domestic adoption as the world moves toward carbon neutrality,” Surapong said. “However, global economic uncertainty and stricter safety equipment requirements from trading partners have reduced automotive exports this month across Asia, Australia, Oceania, and North America, though engine, parts, and component exports continue to grow.”

Domestic Market Shows Mixed Results

Domestic production reached 36,516 units, down 2.08% year-on-year, while domestic sales climbed 5.84% to 49,102 units – the fourth consecutive month of growth. This increase was driven by passenger car sales, particularly affordable electric vehicles that are now more accessible than gasoline cars.

Pickup truck sales continued their decline for over 30 months, dropping 16.3% to just 11,022 units (compared to the pre-COVID average of 35,973 units per month in 2019).

Despite July’s domestic sales growth, the seven-month total (January-July 2025) remains negative at 351,796 units, down 0.74% from last year due to stricter pickup truck loan approvals amid high household debt and Thailand’s modest 2.8% Q2 economic growth.

Economic Outlook

Surapong expressed optimism about the 2026 fiscal budget boosting economic growth and thanked the Monetary Policy Committee for cutting interest rates to reduce borrowers’ burden and enable greater debt repayment.

He also praised the Thai negotiating team for securing a 19% US import tariff rate through discussions with President Trump’s team, which should attract more foreign and domestic investment for exports and job creation, helping reduce household debt through actual repayment rather than reduced lending.

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