In July 2025, Thailand’s car production declined by 11.39% year-on-year, totaling 110,616 units—marking the first drop in three months after a rise of nearly 12% in June. The slump was primarily due to weakened export demand amid uncertainty over U.S. tariffs, resulting in a 13.27% fall in vehicle exports compared to July of the previous year.

Despite this production dip, domestic car sales continued to grow, marking the fourth consecutive month of year-on-year gains. Sales rose 5.84%, supported notably by a striking 35% increase in electric vehicle (EV) sales. However, pickup truck sales remained sluggish due to tighter lending conditions and a generally sluggish economic environment.

The Federation of Thai Industries expects that overall car sales for 2025 may still reach 600,000 units. Thailand continues to serve as Southeast Asia’s largest automotive production hub and remains a vital export base for leading global automakers such as Toyota and Honda 

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Thailand attracted 502 foreign companies in the first half of 2025, with total investment reaching 111.5 billion baht (around US$3.1 billion). This marks a 30% increase in the number of approved companies and a 37% growth in investment value compared to the same period in 2024. The approvals included 123 direct foreign business licenses and 379 investment promotion certificates issued by the Ministry of Commerce’s Department of Business Development. 

Japanese investors dominated the scene with 99 companies investing 43.0 billion baht (US$1.2 billion). They were followed by the United States (72 companies, 2.8 billion baht ≈ US$78 million) and China (65 companies, 18.3 billion baht ≈ US$508 million). Singapore and Hong Kong rounded out the top five sources of foreign investment. 

The Eastern Economic Corridor (EEC) stood out as the top recipient, attracting 158 foreign companies and 62.9 billion baht (about US$1.7 billion), accounting for 56% of total foreign investment value in Thailand. This also represented a 36% increase in company registrations in the EEC compared to the first half of 2024. Key sectors drawing investment included retail trading, plastic engineering research, data center services, digital platforms, and contract manufacturing.

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Thailand has secured a new trade deal with the United States, reducing tariffs on its exports to 19% from a previously proposed 36%, putting the country on par with regional peers such as Indonesia and Vietnam. Finance Minister Pichai Chunhavajira said the agreement strengthens bilateral ties with Washington and will boost Thailand’s competitiveness in global markets.

The government expects the lower tariff to increase investor confidence, stimulate economic growth, and create new opportunities. To support local industries and farmers who may face challenges under the new trade environment, Thailand plans to introduce subsidies, soft loans, tax incentives, and regulatory reforms.

Reflecting the deal’s impact, the Finance Ministry raised its 2025 economic growth forecast slightly from 2.1% to 2.2%. The United States remains Thailand’s top trading partner, accounting for 18.3% of total exports last year, mainly in electronics and rubber, while Thailand imports crude oil, machinery, and chemicals from the U.S.

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Thailand is recalibrating its trade strategy amid growing geopolitical tensions, economic fragmentation, and supply chain disruptions. Thailand Trade Representatives President Nalinee Taveesin emphasized that uncertainty has become the new normal and stressed the importance of deep international cooperation and agility in responding to global shifts. To bolster its economic resilience, the country is pursuing more free trade agreements with the EU, UK, and South Korea, intensifying regional integration through ASEAN and RCEP, and even seeking OECD membership to align with innovation-led economie.

 

On the home front, Thailand is building future-ready supply chains designed to withstand external shocks. The Eastern Economic Corridor is positioned to become a leading hub in the region for advanced manufacturing, logistics, and innovation, while also serving as a gateway to ASEAN market.

 

Meanwhile, the country is advancing its digital transformation and preparing for the future of work. This includes empowering SMEs with digital tools, access to financing, and cross-border platforms to ensure the benefits of digitalization are widespread and inclusive.

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