The surge is largely attributed to an increase in demand for electric vehicles (EVs), particularly battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs). BEV sales soared by 128% year-on-year, hitting 8,479 units, while HEVs saw a 98% rise to reach 12,354 units. This growth comes as government incentives for EVs are set to expire at the end of the year.

Despite the overall market rebound, sales of traditional internal combustion engine (ICE) vehicles continued their downward trend. ICE passenger car deliveries dropped by 18% in October, and pickup truck sales fell by 7.5%. The decline in ICE vehicle sales reflects a broader shift towards electrified options as consumers prioritize lower operating costs and environmental concerns.

Year-to-date figures for the first ten months of 2025 show that BEVs now account for over 18% of total vehicle sales, with Chinese automakers leading the charge through aggressive pricing strategies and extended battery warranties. This has helped to drive overall market growth by 4%, reaching a total of 495,001 units sold.

However, while domestic demand is on the rise, Thailand’s vehicle production faced challenges in exporting vehicles abroad. Export volumes fell by 10% year-to-date, dropping to 771,634 units due to stricter emissions regulations and increased competition from Chinese automakers in key overseas markets.

The Federation of Thai Industries (FTI) expects the trend towards electrification to continue as consumer interest in EVs remains strong. With government incentives for BEVs set to expire soon, it will be interesting to see how manufacturers adapt their strategies to maintain momentum in this rapidly evolving market.

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