Thailand’s auto exports are expected to drop to 900,000 units in 2025, largely due to Australia’s tightening carbon and safety standards on vehicle imports.
According to a Kasikorn Research Centre (KResearch) report, Thailand-made vehicles are “not yet compliant” with Australia’s regulations.
THAILAND AND AUSTRALIA
As it stands, Thailand is Southeast Asia’s vehicle manufacturer, while Australia makes up 28 per cent of its export market. Around Thai-made 200,000 vehicles are exported to Australia every year. Aside from vehicles, Thailand also exports vehicle parts and accessories to its trade partner.
Australia’s New Vehicle Efficiency Standard (NVES) and braking safety standards have increased demand for hybrids and plug-in hybrid electric vehicles (PHEVs). The value of last year’s pick-up truck exports amounted to THB 153 million or AUD 72. Million. Majority of the kingdom’s exports to Australia are pick-up trucks or utes, which may bear the brunt of the new regulations.
The results of the implementation of these new standards reflect in the 15.1 drop in Thailand’s exports to Australia in the first seven months of this year. Additionally, export value has also declined by 17.3 per cent. This resulted in decreases of Thailand’s share in Australia’s vehicle market, 2 per cent for passenger cars and 5 per cent for commercial vehicles.
KResearch predicts that Thailand’s vehicle exports to Australia will drop by 16 per cent for the rest of the year and continue to decline even further.
“SLOW DOWN”
“Thailand urgently needs to accelerate investment in new-generation car manufacturing to meet Australia’s tightening CO₂ standards,” wrote Thai publication The Nation. “Failure to do so could erode Thailand’s global standing as a major automotive production and export hub.”
In March last year, Reuters reported that the Prime Minister of Thailand at the time,
