Industry Outlook 2025-2027: Automobile Industry
Thailand’s automotive industry is expected to experience flat production growth of around -0.5% to 0.5% annually between 2025 and 2027, pressured by weak domestic demand, declining exports, and global trade risks. Domestic sales are forecast to grow by 1–2% per year, although a contraction remains likely in 2025 amid economic uncertainty, weak purchasing power, and delayed government spending. Growth is expected to stabilize in 2026 and recover in 2027, supported by infrastructure investment, tourism expansion, and new EV model launches. Meanwhile, exports are projected to fall by 1.3 to -2.3% annually, constrained by slower demand from key markets, intensifying competition from Chinese automakers, and stricter environmental standards. Although automakers’ profitability will remain under pressure through 2026, a gradual recovery is anticipated by 2027 as Thailand’s EV transition gains momentum under the government’s EV 3.5 policy, tax incentives for hybrid vehicle production, and stronger investment in electric mobility infrastructure.