Core Insights - The Thai vehicle market experienced a year-on-year decline of just over 2% in February 2026, with sales dropping to 48,242 units from 49,313 units a year earlier, primarily due to a significant decrease in battery electric vehicle (BEV) sales following the end of the government's EV3.0 incentive program [1][2] Vehicle Sales Performance - February 2026 marked the first year-on-year decline for the Thai vehicle market in nearly a year, following a strong surge in January when BEVs purchased before the EV3.0 program's expiration were delivered [2] - Overall vehicle sales increased by over 25% in the first two months of 2026, reaching 122,178 units compared to 97,405 units a year earlier, indicating a recovery from two years of declines [3] BEV and Other Vehicle Segments - BEV sales fell by 19% to 6,168 units in February, but year-to-date sales increased by 160% to 38,027 units due to a strong January [4] - Sales of hybrid electric vehicles (HEVs) rose by 19% to 25,360 units in the two-month period, while sales of pickup trucks declined by almost 4% to 24,505 units, and internal combustion engine (ICE) passenger cars fell by 16% to 19,815 units [4] Production and Export Trends - Vehicle production in Thailand rose by 7% year-to-date to 236,338 vehicles, while exports fell by almost 3% to 139,600 units, impacted by a strong baht and increasing competition from Chinese automakers [5] - The Federation of Thai Industries projected vehicle production to reach 1.5 million units in 2026, with 550,000 units for domestic sales and 950,000 for export [6] Market Forecast - GlobalData anticipates a slight decline in domestic light vehicle sales to 613,000 units in 2026, following a 9% increase to 617,000 units in the previous year, with a forecasted rebound of nearly 12% to 684,000 units in 2027 [6]