Thai vehicle sales continued to rebound in December

Market Performance - Thailand's new vehicle market saw a significant rebound in December 2025, with sales increasing by 47% to 71,121 units from 54,016 units a year earlier [1] - December marked the ninth consecutive month of growth, following two years of declines due to financing challenges faced by consumers and small businesses [2] - In 2025, the overall vehicle market expanded by 8.5% to 621,166 units after a 26% drop in 2024 [3] Electric Vehicle Sales - Battery electric vehicle (BEV) sales surged by 80% in 2025, reaching 120,301 units, which accounted for over 19% of total vehicle sales [3] - December 2025 saw BEV deliveries triple to 19,748 units as automakers implemented aggressive marketing strategies and extended battery warranties [3] Production and Export Trends - Vehicle production in Thailand fell slightly by less than 1% to 1,455,569 units in 2025, with exports decreasing by 8.2% to 935,750 units due to stricter emissions regulations and increased competition from Chinese automakers [4] - The Federation of Thai Industries has raised its 2026 vehicle production target to 1.5 million units, which includes 550,000 units for domestic sales and 950,000 units for exports [4] Future Outlook - Analysts predict modest growth for the Thailand light vehicle market in 2026, with domestic light vehicle sales expected to rise by nearly 3% to 625,000 units [5] - The easing of financing pressures and new market entries are anticipated to drive sales growth throughout the year [5]