Summary · why it matters
The Federation of Thai Industries (FTI) is backing the drive of Thailand's automotive industry with the concept of "maintaining the existing base and expanding the new base" to manage the technology transition period in a balanced manner. Mrs. Pimjai Leeissaranukul, FTI Chairperson, stated that Thailand must preserve the strength of its existing production base, especially pickup trucks, which use up to 80-90% domestic parts, while expanding into the future automotive industry, including BEV, Hybrid, and new technologies. Meanwhile, Mr. Suwat Supakarnjanadechakul, Chairman of the Automotive Industry Group, revealed that Thailand's automotive industry is at a critical turning point, with car sales in the first 7 months of 2026 at 406,162 units, up 15.39%, but the growth mostly comes from BEV vehicles, while ICE vehicles and pickup trucks are still contracting, and ICE passenger car production has dropped by over 34%, reflecting a rapid transition. The FTI also noted that the average capacity utilization rate for passenger cars is 40.65% and for 1-ton pickup trucks is 56.54%, which is a warning sign for SME parts manufacturers, especially Tier 2 and Tier 3. At the same time, competition in ASEAN is intensifying, with only 38.7% of Japanese companies planning to expand their business in Thailand, compared to 45.9% in Indonesia and 56.9% in Vietnam. Therefore, Thailand must accelerate the upgrading of SMEs into the future supply chain and create policy balance to attract investment.
