Car production target hit by Mideast war — SkimNews
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- FTI's Automotive Industry Club downgraded Thailand's 2026 car production target from 1.5 million to 1.45 million vehicles, slicing 50,000 from the export allocation while holding the 550,000-unit domestic sales target unchanged
- Thai car exports to the Middle East plunged more than 38% in the first half of the year, with overall car exports falling 8.32% year-on-year to 421,144 units as Strait of Hormuz shipping disruptions took hold
- Club adviser Surapong Paisitpatanapong warned that if the war does not stop, the production target may need to be cut again
- The June 17 US-Iran memorandum of understanding quickly unraveled, with both sides accusing the other of ceasefire violations within days, reigniting severe clashes that disrupted car-export shipping routes
- US tariff policy, rising Chinese EV competition, and CO2 curbs on new ICE cars in some countries were also cited as drags on the production outlook
- Domestic car sales rose 17.3% year-on-year to 58,724 units in H1, with battery EV sales surging 140% to 22,275 units while ICE car sales dropped 33.7% to 8,114 units
Why it matters: Thailand is one of Asia's largest car-exporting economies, so a 38% collapse in Middle East shipments directly erodes the export half of its production base and forces a rare mid-cycle target revision; with the FTI signaling further cuts if the Strait of Hormuz remains disrupted, Thai automakers and parts suppliers face mounting inventory and capacity pressure tied to a conflict they cannot control.
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