Thailand Makes Milestone: Exports of First Electric Vehicles Amid Challenges in Auto Industry
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Thailand exported its first shipment of electric vehicles (EVs) in April 2025, marking a significant milestone amid ongoing challenges for the country's automotive sector. The circulation of the 660 EVs, revealed by the Federation of Thai Industries (FTI), arrived on international shores following an 19.75% drop in total car production in April compared to the previous month. This decline and the lowest production level in 44 months reflect the persistent challenges facing the broader Thai automotive industry.
According to the FTI, total car production in April amounted to 104,250 units, in comparison to 125,612 units in March 2025. Among the vehicle categories, passenger cars and sport utility vehicles (SUVs) witnessed substantial growth, including Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs). Conversely, production of internal combustion engine (ICE) passenger cars plummeted significantly, and pickup trucks saw a 3.06% decrease due to contracting domestic sales.
For the first four months of 2025, total vehicle production reached 456,749 units, an 11.96% reduction compared to the equivalent period in 2024. In April, 67,085 vehicles were manufactured for export, accounting for 64.35% of total production. However, this marked a 6.73% decrease from April 2024, with overall exports totalling 303,881 units for the first four months of 2025, representing a 12.07% annual decline.
April 2025 represented the first time Thailand exported EVs, with the 660 units accounting for 1.43% of the month's total exports, a noteworthy development as no EV exports were recorded in 2024. April's overall vehicle exports declined by 18.77% from the previous month and 6.31% from April 2024.
Notwithstanding the broader decline in exports, HEV exports showed an 87.96% increase, but this was not sufficient to offset the broader decline in exports to various regions like Asia, Australia, the Middle East, Europe, and North America. While the Thai automotive sector composition encompasses over 2,000 component manufacturers, its current challenges and the transformation towards electrification remain significant concerns.
Despite the sector's contribution of more than 900,000 jobs and 10% of the country's GDP, the Thai government is aware of the need for revitalization. In response, tax incentives for PHEVs are planned to begin from January 1, 2026, an initiative aimed at bridging the gap between traditional combustion engines and EVs to support the sector's long-term growth.
- The export of Thailand's first electric vehicles (EVs) in April 2025 signifies a major step forward in the country's automotive sector, despite the industry's ongoing challenges.
- The 660 EVs, which accounted for 1.43% of the month's total exports, were the first recorded EV exports in Thailand, with no EV exports reported in 2024.
- Despite a 6.31% decrease in overall vehicle exports from April 2024, Hybrid Electric Vehicle (HEV) exports saw an 87.96% increase in April 2025.
- The Thai government has recognized the need for revitalization in the automotive sector, which contributes more than 10% of the country's GDP and employs over 900,000 people.
- To support the long-term growth of the sector, tax incentives for Plug-in Hybrid Electric Vehicles (PHEVs) are planned to commence from January 1, 2026.
- As the Thai automotive sector evolves towards electrification, the ongoing challenges and the transition remain significant concerns, especially for the over 2,000 component manufacturers within the industry.
