Politics
Kasikorn Research Center Forecasts Decline in Thailand's 2026 Auto Production
Thailand's automotive sector faces a challenging year with a projected 1.8% contraction in production, as industry experts look toward government policy for a potential recovery in 2027.
According to a report by Prachachat Business, the Kasikorn Research Center has projected that Thailand’s domestic automobile production will contract by 1.8% in 2026. Dr. Rujipan Assarat, Assistant Managing Director at the center, noted that the industry is currently at a critical juncture, characterized by a decline in local manufacturing output that contrasts with rising import figures.
For residents and those monitoring the Thai economy, this shift highlights a period of structural transition within the automotive sector. The industry is currently awaiting a decision from the National Electric Vehicle (EV) Policy Committee regarding new measures intended to facilitate this industrial transition. These government interventions are viewed as essential to potentially reversing the downward trend and fostering a return to positive production growth by next year.
While the current data points to a contraction, the outlook for 2027 remains contingent on the specific details and implementation of the upcoming government policies. Observers are closely monitoring the EV board’s next steps to determine if these measures will effectively stabilize the domestic manufacturing landscape. As of now, the exact nature of the support measures and their potential impact on the broader economy remain to be confirmed.
