The Federation of Thai Industries (FTI) is concerned that the Middle East crisis will severely impact automotive parts and vehicle exports, causing inflation that further weakens purchasing power in Thailand. Meanwhile, Toyota has started to see signs of a slowdown in the Thai automotive industry.
Mr. Surapong Paisitpattanapong, Advisor to the Chairman of the Automotive Industry Group and spokesperson for the Automotive Industry Group of the Federation of Thai Industries (FTI), said the ongoing conflict between the United States, Israel, and Iran—whose duration remains uncertain—is raising concerns over automotive, motorcycle, and parts exports amid rising energy prices.
This situation has triggered global inflation, including in Thailand, which could further weaken already fragile purchasing power. Many experts forecast Thailand's economy to grow around 1.2%, potentially affecting domestic vehicle and motorcycle sales.
In February 2026, finished vehicle exports reached 81,195 units, up 39.02% from the previous month but down slightly by 0.05% (just 41 units) compared to February 2025. Export value stood at 53.36 billion baht, a 6.17% decrease from February 2025.
However, exports to the Middle East have grown well over the past two months. The overall export impact from the war is expected to be significant. In April, some vehicle models could not be shipped; some ships reached the Strait of Hormuz but turned back due to safety concerns. If the war prolongs, an estimated 200,000 units may fail to reach destination markets. There is close monitoring of potential inflation among trading partners and worldwide effects, which could reduce buyers’ purchasing power and thus lower exports.
Additionally, domestic vehicle sales may suffer if the war and high oil prices persist, causing inflation and reduced purchasing power, leading to slower sales and higher prices for all products. There are also concerns about helium shortages, as Qatar— a major producer—is affected; helium is critical in semiconductor manufacturing.
The Middle East is Thailand's third-largest export market for vehicles. Vehicles are the highest-value export product in nearly every Middle Eastern country. Close monitoring is needed to see when the conflict will end. In 2025, Thailand exported 200,001 vehicles to the Middle East, a 0.61% increase from 2024, accounting for 21.17% of total exports of 935,750 units, valued at over 120 billion baht.
Domestic vehicle sales in February 2026 totaled 48,242 units, down 34.75% from January 2026 and 2.17% year-on-year. Electric vehicle sales fell 18.56% compared to February 2025 due to the end of the EV 3.0 program, and sales of pickup trucks and internal combustion engine passenger cars declined due to stricter financial institution policies amid slow economic growth and weak purchasing power.
Toyota has begun to see signs of a slowdown in the Thai automotive industry.
Mr. Supakorn Rattanawaraha, Senior Vice President of Toyota Motor Thailand Co., Ltd., said, The automotive market outlook for March 2026 is expected to show signs of slowing, influenced by the international situation affecting the economy, which impacts the entire vehicle segment due to concerns over energy costs. However, the positive factor of the 2026 Motor Show is anticipated to help stimulate the market from March to April.
For cumulative sales in the first two months of the year, Toyota recorded 40,238 units sold, representing a 32.92% market share and an 11.44% increase compared to the same period last year. Growth was led by the Eco segment, including Yaris and Yaris ATIV, which sold 12,715 units, and the Pure Pick Up segment, including Hilux Travo, Revo, and Champ, which sold 12,019 units.
The February 2026 domestic vehicle market slowed, with total vehicle sales of 48,242 units, down 2.17% year-on-year. Passenger cars and SUVs sold 28,635 units, a 6.84% decline from February last year.
Meanwhile, pickup trucks sold 12,998 units, down 1.41% year-on-year. Battery electric vehicle (BEV) pickups sold 94 units, up 168.57% from February last year, and PPVs sold 4,277 units, up 43.76% year-on-year.
Cumulative vehicle sales for the first two months totaled 122,218 units, a 25.49% increase compared to the same period last year.