Car production target hit by Mideast war
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- FTI's Automotive Industry Club cut Thailand's 2026 car production target from 1.5 million to 1.45 million vehicles, trimming the export portion by 50,000 units while keeping the domestic target unchanged at 550,000.
- Surapong Paisitpatanapong, the club's adviser and spokesman, warned the target could be cut again if the war does not stop.
- Thai car exports to the Middle East plunged more than 38%, with overall car exports in H1 falling 8.32% year-on-year to 421,144 units despite demand still existing in the region.
- The June 17 US-Iran memorandum of understanding collapsed when both sides accused each other of ceasefire violations, reigniting clashes that disrupted Strait of Hormuz shipping lanes.
- Domestic car sales rose 17.3% year-on-year to 58,724 units in H1, with battery EV sales surging 140% to 22,275 while ICE car sales dropped 33.7% to 8,114 units.
- Chinese EV competition, US tariff policy, and CO2 emission rules for ICE cars in some export markets were also cited as pressures factoring into the production revision.
Why it matters: Thailand's auto sector, a major export pillar, loses 50,000 vehicles of planned 2026 output and faces deeper cuts if Strait of Hormuz shipping stays disrupted, while Middle East buyers who still want cars get fewer Thai shipments. At home, the contrast is stark: battery EV sales up 140% even as the export backbone weakens.
