Thailand’s domestic vehicle sales surged 25.59% year-on-year to 59,808 units in August 2026, accelerating from a 20.07% increase in July, according to data from the Federation of Thai Industries (FTI). The strong performance marked the sixth consecutive month of growth, highlighting the continued recovery in domestic demand. Vehicle production rose 10.93% from a year earlier to 124,646 units, following a 6.12% gain in July. The government recently announced plans to reduce excise tax rates for automakers that establish production facilities in Thailand, a move aimed at boosting local manufacturing and increasing the use of domestically sourced parts and raw materials. Still, the FTI continues to project a 3.33% decline in total vehicle production for 2026, citing weaker export demand amid ongoing hostilities in the Middle East. Reflecting these challenges, Thailand’s vehicle exports fell 2.04% year-on-year in August, reversing a 2.39% increase recorded in the previous month.