Thailand’s Auto Industry Shows Signs of Recovery as EVs and Hybrids Drive March Growth

Thailand’s automotive industry showed signs of recovery in March 2026, with total vehicle production rising to 133,413 units, supported by growing domestic demand for electric vehicles (EVs) and hybrid models, according to the Federation of Thai Industries. Production increased by 2.69 percent year-on-year and 13.11 percent from the previous month, reflecting improving momentum as the sector transitions toward cleaner vehicle technologies.

Export production remained a key contributor, reaching 88,651 units, up 6.53 percent from a year earlier. Passenger car production for export rose significantly, helping sustain Thailand’s manufacturing base. Although exports of completely built-up vehicles declined slightly due to reduced shipments to the Middle East, growth in markets such as Australia, Africa, and Europe helped offset the impact.

The shift toward new vehicle technologies became more evident, with hybrid passenger vehicle production rising by 12.69 percent, while internal combustion engine passenger car production declined by 22.08 percent. This trend highlights structural adjustments within the industry in response to changing global demand for energy-efficient vehicles.

Domestic vehicle sales reached 59,865 units in March, up 7.29 percent year-on-year, supported by deliveries from bookings at the Bangkok International Motor Show. Electric vehicles accounted for more than half of total reservations, with battery electric vehicle sales increasing by 47.62 percent and hybrid sales rising by 23.81 percent.

Despite overall improvement, pick-up truck sales declined due to tighter lending conditions and slow economic growth. The industry remains in a transition period, with EVs and hybrids emerging as key growth drivers while exports continue to support overall production.