Thailand's domestic vehicle sales jumped 25.59% year-on-year to 59,808 units in August 2026, accelerating from a 20.07% rise in July, according to data from the Federation of Thai Industries (FTI). This robust performance marked the sixth consecutive month of growth, underscoring a sustained recovery in domestic demand. Vehicle production increased 10.93% from a year earlier to 124,646 units, after a 6.12% gain in July.
The government recently unveiled plans to cut excise tax rates for automakers that establish production facilities in Thailand, in a bid to stimulate local manufacturing and promote greater use of domestically sourced components and raw materials. Despite this supportive policy stance, the FTI still anticipates a 3.33% decline in total vehicle production for 2026, pointing to softer export demand amid ongoing hostilities in the Middle East. Reflecting these external headwinds, Thailand's vehicle exports fell 2.04% year-on-year in August, reversing a 2.39% increase recorded in the previous month.
