Thailand’s success in the automotive industry and the country’s emergence as one of the most important hubs during the past two decades in the Southeast Asia region has acted as a catalyst in the development of a vibrant automotive coating industry in the country.

Major global automotive coating specialists have set up their plants to cater to the increasing demand for their products. Coatings World presents an overview of the Thai automotive coating market in this feature.

Overview of Automotive Coatings in Thailand

Thailand is Southeast Asia’s biggest automotive coating producing industry, on the back of a vibrant automotive production center and an export base for some of the world’s top carmakers, including Honda and Toyota. However, 2024 was a forgettable year for Thailand’s automotive coating producers, as demand dropped by about 18% due to a record decline in automotive production. Vehicle production in the country in the concluded year dipped by about 20% from the previous year, registering the lowest output in four years.

Despite a sizable production of automobiles in the country, vehicle ownership in the country is low as compared to some other Asian countries. Low ownership is a huge opportunity for automotive coating producers.

Automotive Industry in Thailand

Thailand is a leading hub for global vehicle production in Southeast Asia, with 44 automakers from nine countries – China, Italy, Japan, Germany, Singapore, Sweden, Thailand, the United Kingdom and the US – producing 29 brands.

The automotive industry has been a cornerstone of Thailand’s economy since the 1960s, contributing approximately 18% of the total gross domestic product (GDP) in 2021. From 2010 to 2023, the number of light-duty and heavy-duty vehicles increased from 10.8 million to 20.8 million, and motorcycles rose from 17.3 million to 22.7 million, registering a brisk growth rate. As of 2023, motorcycles dominate the sector with a 53% share, followed by passenger cars (27%) and commercial vehicles (20%).

In 2024, car output dropped to 1.47 million units from 1.83 million in 2023. Production on a year-on-year basis contracted for the 17th successive month in December. In 2025, car production is projected at 1.5 million units, of which 1 million will be for export and the rest for the local market, according to the Federation of Thai Industries.