Bangkok: The Federation of Thai Industries (FTI) is expressing concern that the ongoing Middle East conflict could adversely affect Thailand's automotive exports and domestic sales.
According to Thai News Agency, the FTI has noted that despite these concerns, there remains robust demand for electric vehicles (EVs) in Thailand, driven largely by rising diesel prices, which has sparked consumer interest particularly in electric pickup trucks.
Mr. Surapong Paisitpatthanapong, who serves as an advisor to the chairman of the automotive industry group and spokesperson for the FTI, reported that Thailand's vehicle production in February 2026 witnessed a modest recovery, with 117,952 cars produced, marking a 3.43% increase compared to the previous year. This production included a significant rise in electric passenger cars and pickup trucks, with increases of 71.54% and 100% respectively. However, overall sales experienced a decline, totaling 48,242 units, which is 2.17% less than in 2025 and a substantial 34.75% drop from the previous month. This decline is attributed to various factors including the conclusion of the EV 3.0 project and stricter lending policies due to low economic growth and weak purchasing power.
The conflict involving the United States, Israel, and Iran has raised uncertainties regarding the export of automotive products, potentially exacerbated by rising energy prices and subsequent global inflation. There is a prevailing concern that these issues could further weaken Thailand's purchasing power. Experts predict that the Thai economy may only grow by approximately 1.2%, which could negatively impact the domestic sales of cars and motorcycles.
Mr. Surapong also voiced concerns about the potential impact of the Middle East conflict on automotive exports. In 2025, Thailand exported 200,001 cars to the Middle East, constituting 21% of its total car exports. While exports have been strong in recent months due to climbing global oil prices, disruptions have occurred with some shipments encountering difficulties in navigating the Strait of Hormuz. This has led to rerouting of ships back to India, Singapore, or Thailand. A prolonged conflict could jeopardize the export target of 200,000 cars and might induce inflation in trading partner countries, affecting consumer purchasing power and sales.
In addition, sustained high oil prices could lead to increased interest in electric vehicles, especially electric pickup trucks, due to their cost-effectiveness. There is also a looming risk concerning the supply of helium, a critical component in semiconductor manufacturing, largely exported by Qatar. A prolonged closure of the Strait of Hormuz could result in a helium shortage, impacting global car production. Although current stock levels are sufficient in the short term, a prolonged conflict could necessitate price adjustments due to rising production and logistics costs.
The automotive industry is facing further challenges as some export orders for automotive parts have been canceled following significant increases in freight costs. Mr. Surapong emphasized the need to closely monitor the situation, stating that while targets have not yet been adjusted, there will be further discussions by mid-year to reassess the 2026 projections.