New vehicles attract visitors to the Bangkok International Motor Show earlier this year. (Photo: Pattarapong Chatpattarasill)
The escalating Israel-US war on Iran is denting Thai car exports to the Middle East, causing the Federation of Thai Industries (FTI) to downgrade the country's car manufacturing target for 2026.Car exporters were initially relieved when Washington and Tehran signed a memorandum of understanding on June 17 that paved the way for peace, but days later both sides quickly accused each other of violating the interim ceasefire.
Severe clashes re-emerged, disrupting shipping via the Strait of Hormuz and affecting car exports.
The situation caused the FTI's Automotive Industry Club to reduce its car production target from 1.5 million vehicles, with 950,000 for export and 550,000 for domestic sales, to 1.45 million vehicles.
The club decreased the production target for export by 50,000 vehicles, though it maintained the production target for domestic sales.
