BANGKOK — The Federation of Thai Industries (FTI) reported that domestic car sales fell to just 49,313 units in February 2025, down 6.68 percent year-on-year. Exports also fell by 8.34 percent, resulting in a sharp decline in car production to 115,487 units, a drop of 13.62 percent. However, battery electric vehicle (BEV) production rose to 7,574 units, a 60.09 percent increase year-on-year.

Ahead of ASEAN’s largest auto show, the Bangkok International Motor Show 2025, which will be held from March 26 to April 6, Surapong Paisitpatanapong, adviser to the president of the Automotive Industry Group, summarized that the market has been declining for two months in a row.

Drops in Production and Sales

Car production totaled 115,487 units in February 2025, a decline of 13.62 percent, mainly due to a 21.26 percent drop in domestic production. In the first two months (January–February), total production amounted to 222,590 units, a decrease of 19.29. Vehicle production for export amounted to 78,535 units in February, a decrease of 9.48 percent.

The cumulative export production in the two months amounted to 153,579 units, a decrease of 15.56 percent. The production of passenger cars in particular plummeted by 47.01, following the decline in export volumes.

Domestic production for sale amounted to only 10,993 units, which corresponds to a sharp decline of 42.1 percent. In total, only 20,507 units were produced in January and February, representing just 13.99 percent of total pickup production and a 46.39 percent year-on-year decline. This includes standard pickups, double cabs and PPVs (pickup passenger vehicles).

In the first two months of 2025, a total of 97,395 cars were sold in Germany, 9.53 fewer than in the previous year. In February alone, 49,313 cars were sold domestically, down 1.2 percent from January and 6.68 percent less than February 2024.

The decline is attributed to tighter credit approvals from financial institutions, particularly for pickup truck buyers, which fell 14.9 percent. The hope is that the upcoming auto show will help boost bookings, especially if lenders ease credit restrictions on pickup trucks.
There will be 54 car brands on display at this year’s Motor Show, including 41 car manufacturers and 13 motorcycle manufacturers.

Government Measures Awaited

The government is also preparing a support program for pickup truck buyers under the “Phee Mee Khlang Kam” (“Big Brother’s Loan Guarantee”) program, in which the Thai Credit Guarantee Corporation (TCG) will provide guarantees for loans to purchase pickup trucks.

This program, which is aimed at small businesses and farmers, is the first initiative of its kind in Thailand and has a budget of 5 billion baht ($148 million).

Applications will be accepted from April 1 to December 31, 2025. The aim is to boost sales and support SMEs that use pickups for their livelihood. Results are expected within two months, although the actual impact will depend on registration rates.

“The car market in 2025 still shows no signs of recovery. The figures for the last two months clearly reflect this. We hope the government’s stimulus measures can help, and we thank the Ministry of Finance for recognizing the hardships of people in all sectors. To further boost pickup sales, we urge the government to amend the regulations to allow non-bank lenders and automakers’ financing institutions to participate in the loan guarantee program,” Surapong said.

U.S. Tariff Concerns Cast Shadow on Exports

Although Thailand exported 81,323 completely built-up (CBU) vehicles in February 2025, a 30.49 percent increase from January, this was still 8.34 percent lower than February 2024. The decline was partly due to model changes in some passenger cars, delaying production and lowering exports to Asia, Europe, North America, Central and South America.

Markets are also on edge awaiting the U.S. decision on vehicle import tariffs set to take effect on 2 April 2025. Several trading partners have reduced orders pending clarity on U.S. policy, while some markets are being disrupted by an influx of low-cost EVs, and others are enforcing stricter carbon emission regulations. As a result, total CBU vehicle exports for Jan–Feb stood at 143,644 units, down 18.12 percent.

EV Bookings Surge Despite Overall Slump

In contrast to the declining sales of traditional vehicles, BEV registrations reached 7,375 units in February 2025, an increase of 16.42 percent compared to the previous month. In the first two months of the year, new BEV registrations totaled 22,086 units, which is only a slight decrease of 0.86 compared to the previous year.

“Prices for electric cars are becoming increasingly competitive, partly because global lithium prices have fallen. As a result, the cost of manufacturing electric car batteries has fallen, which is also pushing down retail prices,” explained Surapong.

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