Automobiles and Petroleum Support March MPI Growth of 0.75%, Signaling Gradual Thai Industrial Recovery

The Office of Industrial Economics (OIE) announced that Thailand's Manufacturing Production Index (MPI) reached 108.69 in March 2025, expanding 0.75% from the same period last year, with manufacturing capacity utilization at 64.61%. The petroleum industry expanded 1.48%, while industrial goods exports grew substantially at 21.10%—marking 21 consecutive months of expansion—and the automotive sector returned to growth at 0.55%.

Automobile bookings at Motor Show 2026 totaled 132,951 units, up 55,572 units or 71.8% compared to the previous year, reflecting strong demand for modern vehicles, particularly electric and hybrid models. This surge stems from volatile oil prices, worsening PM 2.5 pollution, and government incentive programs including EV 3.0 and EV 3.5 initiatives, which have encouraged consumers to prioritize fuel-efficient, low-emission vehicles.

These trends are expected to boost automotive production and domestic component usage, supporting Thailand's transition toward becoming a regional center for modern vehicle manufacturing. International tourist arrivals grew 2.0% to 2.8 million, benefiting related industries. The first-quarter 2025 MPI reached 102.76, expanding 0.83% year-on-year with average capacity utilization at 61.26%.

Government stability and smooth governance transition have supported the continuation of economic stimulus programs and projects. Officials expect Thailand's industrial sector to gradually recover throughout 2025, provided risks from global trade policies and geopolitical tensions are managed effectively. However, April 2025 signals warrant caution, as Middle East tensions raise energy costs and logistics expenses, while persistent trade barriers and import competition increase pressure on domestic manufacturers.