Thailand’s new vehicle market surged by almost 24% to 48,350 units in September 2025 from depressed year-earlier sales of 39,048 units, according to the latest wholesale data released by the Federation of Thai Industries (FTI).
September was the sixth consecutive month of growth for the market, after two years of sharp declines, as the country’s highly indebted consumers and small businesses struggled to access vehicle financing after local banks tightened lending rules. The Bank of Thailand has cut its benchmark interest rate by 25 basis points four times in the last year, from a peak of 2.5% to 1.5%, to help support the domestic economy.
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The vehicle market was driven higher by surging demand for electrified vehicles last month, with deliveries of battery electric vehicles (BEVs) almost doubling year-on-year to 9,107 units, while sales of hybrid electric vehicles (HEVs) jumped by 107% to 12,764 units, as Chinese automakers continued to ramp up local production.
In the first nine months of 2025, the Thai vehicle market expanded by just over 2% to 447,969 units, compared with 438,654 units in the same period last year. BEV sales amounted to 81,381 units in this period, accounting for more than 18% of total vehicle sales, with full-year volumes expected to exceed 100,000 units – helped by new models, extended battery warranties, and aggressive pricing.
Vehicle production in the country fell by 5% to 1,075,801 units year-to-date, driven lower mainly by a 12% drop in exports to 689,031 units, with demand affected by stricter emissions regulations in some key overseas markets and rising global competition from Chinese automakers. The FTI recently revised its full-year vehicle output forecast down to 1.4 million units, from 1.5 million units earlier this year.
The Thai government recently indicated that it was considering introducing scrappage incentives to encourage owners to trade in their old pickup trucks for new ones. Earlier this year, it launched a THB 5 billion loan-guarantee programme, which runs until the end of the year, to support pickup truck purchases by small and medium-sized businesses. This has not had a significant impact on pickup truck sales so far, with sales continuing to decline last month from already depressed year-earlier levels.
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