Thailand’s car production rises 11% in November as domestic sales climb
factory output hits 130,222 units while exports lag despite strong year-end outlook
Thailand’s car production rose sharply in November, climbing 11.06% from a year earlier to 130,222 units, according to data released on Monday by the Federation of Thai Industries.
The increase follows another strong month in October, when production rose 14.17% year on year, signalling a steady recovery in the country’s auto manufacturing sector. Thailand is Southeast Asia’s largest vehicle production hub and a major export base for global carmakers including Toyota and Honda.
Domestic demand was a key driver of November’s growth. Local car sales jumped 20.65% from a year earlier, following a near 25% increase in October. Industry officials said stronger consumer confidence and promotional campaigns helped lift showroom activity toward the end of the year.
“Seeing the figures makes me feel much more relieved,” said Surapong Paisitpatanapong of the Federation of Thai Industries’ automotive club. He noted that recent gains have helped offset earlier weakness in some segments of the market.
Despite higher overall production, challenges remain. Surapong said the steepest decline over the first 11 months of the year was seen in passenger internal combustion engine vehicles. He attributed the drop to the discontinuation of production for certain export models, as manufacturers adjust product lines and shift toward newer technologies.
Exports continue to weigh on the outlook. Thailand’s auto exports fell 12.2% in November compared with a year earlier, following a 1.5% decline in October. The drop highlights uneven global demand and growing competition in overseas markets, even as domestic sales remain strong.
Looking ahead, industry officials remain cautiously optimistic. Surapong said total vehicle production for the first 11 months suggests Thailand is on track to meet its full-year target of 1.45 million units. However, whether the country can achieve its export production goal of 950,000 units remains uncertain, given the recent decline in overseas shipments.
The auto sector is a cornerstone of Thailand’s economy, supporting hundreds of thousands of jobs and accounting for a significant share of industrial output and exports. Analysts say continued strength in domestic sales could help cushion export volatility, but global market conditions will be critical in determining performance in 2026.
Source: Reuters
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