Domestic market shows resilience
Thailand's automotive industry has faced a downturn in the first five months of 2026, with car production falling by 1.13% year-on-year to 587,759 units, according to the Federation of Thai Industries (FTI).The decline has been largely attributed to the US–Israeli war with Iran, which has disrupted global trade routes and directly affected Thailand's vehicle exports.
In May alone, production dropped by 17.9% year-on-year, totalling 114,214 units.
The FTI said the closure of the Strait of Hormuz -- a critical shipping lane -- has severely hindered Thailand's car exports to the Middle East, its third-largest market after Asia and Australia.
Demand for pickup trucks in the region remains strong, but logistical barriers have caused a steep decline in shipments.
