Thailand’s automotive production experienced a significant decline in May, falling nearly 18% year-on-year to 114,214 vehicles. This drop was primarily driven by a 26.69% decrease in vehicle exports, which the Federation of Thai Industries (FTI) attributes to the ongoing conflict in the Middle East. Despite the production slump, domestic auto sales showed signs of recovery, fueled by increasing demand for electric vehicles. The FTI’s Automotive Industry Club reported the export decline as a key factor impacting overall output. While domestic demand offers some support, the external pressures from the Middle East situation are demonstrably affecting Thailand’s automotive sector. The data indicates a challenging period for Thai auto exports in the short term.