Thailand’s automotive sector is setting its sights on resilient growth in 2026, with the Thai Automotive Industry Association (TAIA) targeting production of 1.5 million vehicles and exports expected to hold at 950,000 units.

The announcement underscores the centrality of the auto industry to Thailand’s economy, reflecting both the resilience of local manufacturing and the challenges posed by global competition.

TAIA president Suvachai Suphakanjandachakul said the 2026 output goal is an increase from around 1.455 million vehicles produced in 2025. The association forecasts that of the 1.5 million units in 2026, some 550,000 will be sold domestically while 950,000 units will be shipped abroad, keeping export volume steady with 2025 levels.

Exports remain a key driver of Thailand’s automotive base, which accounts for a significant share of industrial output and employment.

However, the industry’s leadership highlights ongoing headwinds in overseas markets, including intensifying competition from neighbouring producers such as China, which has expanded its presence in traditional Thai export markets like Australia.

Part of the external uncertainty revolves around evolving electric vehicle (EV) export incentives.

TAIA referenced provisions under an EV policy structure that allow certain export vehicles to be counted as more than one unit for incentive calculations and that extend specific export deadlines into the middle of 2026. What we can confirm is that industry leaders are engaging with these policy mechanisms; what’s still unclear is how final implementation and market reception will influence actual export performance.

Domestically, the industry is calling for sustained policy support after Thailand’s election cycle.

Suvachai noted that continuity in measures such as proposed scrappage-style schemes — which would encourage owners of older vehicles to trade in for new models — could help stimulate demand in a market where household debt and tighter lending conditions have constrained some buyer segments.

The Federation of Thai Industries reported that total vehicle production for 2025 was slightly above target, at approximately 1,455,569 units, though export production declined by over five percent from the previous year.

Domestic sales recorded notable improvement in late 2025, with December sales up significantly year-on-year, while certain segments like pickup trucks remained subdued.

Thailand’s automotive ecosystem continues to be a cornerstone of industrial strategy and export identity.

By setting a clear production target and advocating for consistent policy frameworks, industry leaders aim to reinforce confidence among investors, suppliers, and consumers.

Sustained focus on both domestic markets and global trade competitiveness will be essential as Thailand navigates its role in the future of mobility and manufacturing.

The emphasis on stable production goals and strategic policy alignment reflects a positive trajectory for Thailand’s industrial development and economic confidence as the country enters 2026 with ambition and clarity.