Bangkok, March 25, 2025 — Thailand’s auto industry faced a downturn in early 2025, with domestic car sales dropping by 6.68 percent year-on-year in February, according to the Federation of Thai Industries (FTI). The decline, accompanied by an 8.34 percent fall in exports, resulted in a sharp 13.62 percent reduction in total car production. Industry leaders hope that the upcoming Bangkok International Motor Show, scheduled for March 26 to April 6, will help stimulate demand.
February saw domestic car production reach 115,487 units, marking a 13.62 percent drop. The first two months of the year recorded a total production of 222,590 units, down 19.29 percent from the previous year. Export-oriented production declined by 9.48 percent in February, with cumulative exports for January and February falling by 15.56 percent. Passenger car output dropped significantly, with a 47.01 percent decrease following weakened overseas demand.
Domestically, vehicle sales stood at 49,313 units in February, reflecting a 1.2 percent decline from January and a 6.68 percent drop compared to February 2024. Financial institutions tightening credit approvals, particularly for pickup truck buyers, contributed to the decline, with sales in this category falling by 14.9 percent.
To counter declining pickup truck sales, the government is introducing the “Big Brother’s Loan Guarantee” program, backed by the Thai Credit Guarantee Corporation. With a 5-billion-baht ($148 million) budget, the initiative aims to assist small businesses and farmers in acquiring vehicles. Applications will be open from April 1 to December 31, with results expected within two months.
Industry representatives have called for expanded financing options, urging policymakers to allow non-bank lenders and automakers’ financial subsidiaries to participate in the program.
While Thailand exported 81,323 completely built-up (CBU) vehicles in February, marking a 30.49 percent increase from January, the figure remained 8.34 percent lower than the same period last year. Model transitions for passenger cars affected production and exports, with declines observed in shipments to Asia, Europe, and the Americas.
Additionally, the industry faces uncertainty ahead of new U.S. import tariffs, set to take effect on April 2. Some international buyers have delayed orders pending clarity on trade policies. Meanwhile, growing competition from low-cost electric vehicles and stricter emissions regulations in key markets are shaping the outlook for Thai auto exports.
The Bangkok International Motor Show, featuring 54 brands, including 41 car manufacturers and 13 motorcycle makers, is expected to provide a much-needed boost to the sector.
