New vehicle sales in Thailand expanded by 10.6% to 57,765 units in May 2026, up from 52,229 units a year earlier, according to the latest data released by the Federation of Thai Industries (FTI). The market was driven higher by continued strong demand for battery electric vehicles (BEVs), sales of which surged by 61% year-on-year to 18,034 units last month.

The Thai domestic vehicle market last month continued its moderate, year-long recovery following two years of sharp declines, but volumes remain far below previous peaks despite a pick-up in economic activity in the country. GDP growth accelerated to 2.8% year-on-year in the first quarter of 2026, up from 2.5% in the fourth quarter of 2025, reflecting a sharp rise in government spending and stronger private investment growth, while private consumption growth eased slightly.

In the first five months of 2026, Thailand’s domestic vehicle market expanded by 14% to 288,242 units, from 252,615 units a year earlier. Sales of pickup trucks fell by over 4% to 59,703 units in this period, while sales of light passenger vehicles increased by 22% to 198,008 units, including a 54% surge in battery electric vehicle (BEV) sales to 83,320 units and a 16% increase in hybrid electric vehicles (HEVs) sales to 64,136 units.

Vehicle production in the country fell by over 1% to 587,759 vehicles year-to-date, driven lower by an 8.5% drop in exports to 333,618 units, with shipments to some key markets disrupted by the conflict in the Middle East.

Earlier this year, the FTI said it expected vehicle production in the country to reach 1.5 million units this year, including 550,000 for sale domestically and 950,000 for export. GlobalData expects domestic light vehicle sales to continue to rise this year, by over 2% to 633,000 units after growing by 9% to 618,000 units last year, followed by a 6.5% rise to 675,000 units in 2027.