Conflict hammers automotive demand
Thailand’s automotive industry is bracing for a potential setback in 2026, with car production expected to miss its target for the first time in five years if the war in the Middle East drags on beyond three months and shipping routes through the Strait of Hormuz remain disrupted, says the Federation of Thai Industries (FTI).Earlier this year, the FTI’s Automotive Industry Club set a target of 1.5 million vehicles for 2026, including 950,000 units for export and 550,000 for domestic sales.
Surapong Paisitpatanapong, advisor and spokesman for the club, warned that the Middle East conflict is directly damaging Thailand’s automotive exports and domestic economy.
“The Middle East is the third-largest vehicle export market for Thailand, with strong demand for pickups. Delayed shipping and transport disruptions have severely reduced export volumes,” he said.
In April, Thailand’s car exports plunged 8.43% year-on-year to 60,190 units, with shipments to the Middle East collapsing by 91.7% to just 993 units.
