A car is loaded onto a ship in the Laem Chabang deep-sea port, preparing for export. File photo
Thailand's Manufacturing Production Index (MPI) decreased by 0.8% year-on-year to 101.18 points in May, due mainly to a slowdown in the domestic automotive sector, said the Office of Industrial Economics (OIE).However, the index increased from 92.76 points in April, when global conflicts and domestic challenges weighed on industrial activity.
"Car manufacturing fell by 8.6% year-on-year as sales in domestic and export markets slowed down," said Supakit Boonsiri, director-general of the OIE.
Domestically, banks and car financing companies continued to tighten lending criteria, making it difficult for prospective buyers to get auto loans, while car exports bore the brunt of the closure of the Strait of Hormuz during the US-Israeli war with Iran, he said.
The Federation of Thai Industries' Automotive Industry Club earlier reported that May 2026 marked the first time Thailand's export-oriented car production had fallen below domestic output.
