Thai vehicle production is expected to fall by around 10% to 1.60-1.65m units in 2011, from over 1.8m units in 2010 - despite continued strong domestic demand, according to the Thai Automotive Institute.

The institute’s president, Vallop Tiasiri, said the country’s three main automakers - Toyota, Isuzu and Honda, are quickly retuning to full operating capacity after severe disruption to their parts imports in the second quarter - caused by the earthquake in Japan in March.

Vallop said Toyota returned to full operating capacity on 23 May and Isuzu on 1 June, while Honda’s expects normal operations by July. It also expects to make a small number of deliveries of its Brio eco-car next month - after a three-month delay.

The institute forecasts domestic vehicle sales of 850,000 units and exports of between 750,000-800,000 units.