Thailand's sluggish car market still attracts Chinese investment

A raft of issues hindering EV industry in Thailand. (Photo: iStock)

Thailand's weak automotive market may hinder the development of electric vehicles (EVs). After revising its car production targets for the year, the Federation of Thai Industries (FTI) has also lowered its forecast for new EV registrations, citing three main factors: slow economic growth, price wars among car manufacturers, and rising production costs.

Thailand's car market faces headwinds

Known as the "Detroit of the East," Thailand is a key automotive production hub in Southeast Asia. However, automakers have reduced output due to sluggish sales. Statistics show that between January and June this year, Thailand produced 761,240 vehicles, a 17% decrease compared to the same period last year. As a result, the FTI has adjusted this year's production target to 1.7 million vehicles, 200,000 fewer than originally expected.