Thailand's new vehicle market expanded by 5.7% year-on-year to 69,797 units in June, according to data released by the Federation of Thai Industries.

The vehicle market continued to recover from four straight years of decline which culminated in a 4% drop to 768,788 units last year from peak levels of 1.43m units in 2012.

Sales in recent months were driven higher by a pick up in economic activity, new model launches and the end of the lock up period for tax rebates for those who bought cars under the government's first-time buyer scheme over five years ago. 

In the first half of the year vehicle sales were up by 11.2% to 409,976 units.

At the beginning of the year, the federation forecast full year sales to rise by around 4% to 800,000 units but those estimates may be revised upwards in view of the market's strong first half performance.

Vehicle production fell by 2.5% year on year to 175,443 units in June, reflecting a 13% drop in exports to 93,086 units. 

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In the first half, vehicle production fell 4.3% to 950,966 units while exports were down 9.8% to 536,406 units.