The Federation of Thai Industries (FTI) has maintained its car manufacturing target for 2025 amid fresh hopes for improving consumer purchasing power and a better economy based on the new government’s policies.
Prime Minister Anutin Charnvirakul’s plan to revive a co-payment scheme initiated by the Prayut Chan-o-cha government was welcomed by Surapong Paisitpatanapong, vice-chairman of the FTI and spokesman for the federation’s Automotive Industry Club.
He said he is looking forward to other economic measures proposed by the Bhumjaithai Party-led coalition government.
“We expect business and consumer confidence to recover, leading to a stronger economy,” said Mr Surapong.
“A better economy is good for the automotive industry as it helps to drive up car sales.”
Mr Anutin’s meetings with business groups in the industry, commerce and banking sectors to gather first-hand information was also applauded by Mr Surapong.
“This is a positive sign and raises hopes for the sluggish automotive industry to recover,” he said.
The club previously expected Thailand to produce 1.45 million cars this year, with 500,000 units manufactured for the domestic market and 950,000 units made for export.
The club has yet to downgrade its projection, even though the first eight months of 2025 saw total car production fall by 5.7% year-on-year to 947,997 units.
In August, car manufacturing decreased by 6.1% year-on-year to 112,366 units, following a drop in car exports partly because of stricter rules on carbon emissions and safety standards from Thailand’s trading partners and no production of some car models.
Car exports fell by 17.3% year-on-year to 71,179 units this month, mainly because of a drop in passenger car and pickup exports in the internal combustion engine category.
From January to August, car exports decreased by 12.4% year-on-year to 602,975 units.
Mr Surapong said domestic car sales in August improved, with sales increasing by 5.38% year-on-year to 47,622 units, thanks partly to the “Big Motor Sale 2025” event held from Aug 22-31.
From January to August, car sales in the country tallied 399,619 units, an increase of eight units year-on-year.
