Bangkok: In the first month of 2025, Thailand's automotive industry witnessed a significant decline in production, sales, and exports, prompting urgent relief measures from the government.
According to Thai News Agency, the Federation of Thai Industries (FTI) reported a steep decline in export figures for January 2025, marking the lowest in 33 months. Concerns over the ongoing trade war have significantly impacted car production, which plummeted by 24.63%. The FTI has urged the government to expedite measures to guarantee loans for pickup trucks. Although the production of electric vehicles increased by 155.37%, their sales fell by 28.08%.
Mr. Surapong Paisitpatanapong, advisor to the chairman of the Automotive Industry Club and spokesperson for the Automotive Industry Club, FTI, revealed that the total car production in January 2025 was 107,103 units, representing a 24.63% decrease from January 2024. Domestic car production saw a downturn of 31.78%, while export production decreased by 21.10%. The production of passenger cars in January 2025 was 35,714 units, a decline of 31.98% from the previous year. This included a sharp drop of 51.09% in ICE passenger cars and a notable increase of 155.37% in BEV passenger cars. PHEV passenger cars experienced a dramatic rise of 439.90%, whereas HEV passenger cars fell by 15.36%.
In January 2025, 71,389 trucks were produced, a reduction of 20.31%, and 70,604 1-ton pickup trucks were manufactured, marking an 18.65% decrease. Production for domestic sales accounted for 32,059 units, down 31.78%, while production for export accounted for 75,044 units, down 21.10% from January 2024. Domestic car sales totaled 48,092 units in January 2025, a 12.26% decline. Financial institutions' stringent loan policies, high household debt, and a sluggish domestic economy, which expanded by only 2.5% in 2024, contributed to the decline. The automotive production index continued to fall, affecting related industries and reducing workers' incomes, which led to decreased spending and low economic growth. The government is urged to accelerate measures to expedite loans for pickup trucks to stimulate production, employment, and economic growth.
For passenger cars sold domestically in January 2025, there were 30,610 cars, accounting for 63.65% of total sales, a 10.92% decrease from the previous year. ICE passenger cars made up 24.97% of total sales, a decline of 16.44%. BEV sales accounted for 14.60% of total sales, down 28.08%. PHEV sales increased by 884.69%, while HEV sales decreased by 4.77%. Sales of pickup trucks fell by 17.51%.
In January 2025, 62,321 finished cars were exported, a 28.13% decrease, the lowest in 33 months. Trade war concerns, including increased U.S. import tariffs and competition from Chinese electric cars, contributed to the decline. Some exported car models are being replaced with new models. January's late company openings, following December holidays, also affected production and exports to markets in Australia, the Middle East, Europe, Central America, and South America.
The total export value of finished cars, engines, parts, motorcycles, and parts in January 2025 was 68,069.18 million baht, a 20.63% decrease from 2024.