Thailand's car market continued its recovery in August, with sales rising 25.6% year-on-year to 59,809 units, marking the sixth consecutive month of growth, according to data from the Federation of Thai Industries (FTI) cited by Nikkei. The rebound was led by passenger cars, particularly battery-electric vehicles (BEVs) and hybrids, while traditional internal combustion engine models saw their share shrink further.
Electrified vehicles dominate passenger car sales
In the passenger car segment, BEV sales surged 113.3% year-on-year to 19,721 units, while hybrid electric vehicle (HEV) sales rose 31.8% to 14,807 units. Plug-in hybrid electric vehicle (PHEV) sales jumped 126.5% to 1,053 units. In contrast, sales of conventional petrol passenger cars fell 17% to 7,973 units. Electrified vehicles—including BEVs, HEVs, and PHEVs—accounted for more than 80% of all passenger car sales in August, with BEVs alone representing nearly one-third of the monthly total.
The shift away from petrol cars is also visible in production. Total vehicle output in Thailand rose 10.9% year-on-year to 124,646 units, supported by higher EV production and export orders, according to the FTI.
Surapong Paisitpattanapong, spokesperson for the FTI's automotive industry division, told Nikkei that the market is recovering but still below pre-pandemic levels, when monthly sales typically ranged from 70,000 to 80,000 units. He attributed the rising demand for EVs partly to higher fuel prices driven by the Middle East conflict, prompting consumers to consider alternatives to petrol cars. The increased availability of affordable EVs, especially from Chinese brands, also boosted demand.
Import reliance and tax concerns
Despite the strong headline numbers, the industry faces challenges including weak purchasing power and tighter credit approval. Pickup trucks, a core segment in Thailand, saw sales decline: one-tonne pickups fell 10.8% to 5,177 units in August, while double-cab pickups dropped 3.6% to 4,910 units.
The surge in EV demand has also exposed Thailand's heavy reliance on imported EVs. In August, locally produced BEV passenger cars totaled 13,126 units, far below the 19,721 BEVs sold. In the first eight months of the year, domestic BEV production reached 60,578 units, while sales hit 145,132 units, implying that about 58% of BEVs sold in that period were imported.
Surapong noted that imported EVs do not create jobs or industrial value for Thailand, and called for adjustments to the excise tax system to create a fairer competitive environment between established automakers and new EV entrants. The FTI says the current tax regime is overly favorable to EVs: locally assembled EVs face a 2% excise tax, imported EVs 10%, hybrids 6%–15%, and petrol cars 25%–35%. The Thai government has agreed in principle to revise the excise framework, and Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said a new vehicle tax policy could be finalized by the end of September.
