Thailand's car production in 2024 fell by 20%, reaching a four-year low of 1.47 million units, down from 1.83 million in 2023. The decline was attributed to weaker domestic demand and a decrease in exports.

Production contracted for the 17th consecutive month in December, with a 17.4% drop to 104,878 units.

Domestic sales plummeted by 26.2%, marking the lowest level in 15 years at 572,675 units.

The drop was largely driven by tighter auto loan rules and high household debt, with car loan rejection rates rising to 70%.

Car exports also fell 8.8% to 1 million units, impacted by geopolitical issues, competition from electric vehicles (EVs), and stricter carbon emission regulations in key markets.

Despite these challenges, the Federation of Thai Industries (FTI) forecasts a 2% increase in car production for 2025, with a target of 1.5 million units, driven by an expected rise in electric vehicle production and government stimulus measures.

Thailand remains Southeast Asia’s largest car production hub, hosting major global automakers such as Toyota and Honda.

Additionally, the Excise Department is planning to restructure tax rates to support the transition to electric and hydrogen-powered vehicles.