Bangkok: Electric vehicle (EV) sales are rapidly increasing in Thailand, but 62% of these vehicles are imported, sparking concerns among local manufacturers. The Federation of Thai Industries (FTI) recently released figures indicating a significant recovery in the automotive industry, with total vehicle production reaching 117,383 units in July 2026, marking a 6.12 percent increase. The surge in EV sales is a major contributing factor to this growth.
According to Thai News Agency, Mr. Suwachar Supakarndechakul, Vice President of the FTI, and Mr. Surapong Paisitpatthanapong, Advisor to the Chairman of the Automotive Industry Group, highlighted the impressive growth of electric passenger vehicle production, which reached 13,422 units, a record 271.80% increase. Domestic sales of battery electric vehicles (BEVs) also rose sharply to 21,492 units, accounting for 35.46% of total passenger car sales. However, the production of internal combustion engine (ICE) vehicles decreased significantly, reflecting a shift in consumer preference toward clean energy vehicles.
Despite the positive trends in EV sales, automotive manufacturers have raised concerns over the high proportion of imported electric vehicles. In the first seven months of 2026, electric vehicle sales reached 125,411 units, with only 37.42% produced domestically. This disparity has led industry leaders to urge the government to reconsider the current tax structure, which they argue disadvantages Thai-made vehicles that employ local workers and use domestically produced parts.
Another area of concern is the stagnation of the pickup truck market, a key product for Thailand, with sales plummeting over 60% due to tighter lending standards and a slow domestic economic growth rate. This downturn has impacted the production of pickup truck parts, affecting the entire supply chain and leading to a decrease in the country's industrial production index.
On the export front, Thailand shipped 74,169 finished vehicles in July 2026, a 2.39 percent increase driven by strong demand in the Australian, Oceania, and Asian markets. Despite challenges in the Middle East due to security issues in the Strait of Hormuz, the total export value of vehicles and components rose by 5.99 percent to 82,528.03 million baht.