# Thailand automotive industry market shift > Developing situation record from CLSTR: https://clstr.news/situations/thailand-automotive-industry-market-shift > Updated: 2026-10-31T06:43:03.000Z. Sources: 19. Developments: 3. Thailand's automotive sector is experiencing a significant transformation as Chinese electric vehicle (EV) manufacturers displace traditional Japanese dominance. In the Rayong province manufacturing hub, companies like BYD and Great Wall Motors have established major footprints, with BYD opening its first overseas factory and Great Wall Motors acquiring a former General Motors facility. Chinese brands now hold 85% of Thailand's EV market share. This shift has pressured Japanese manufacturers, leading to plant closures by Subaru and Suzuki, and production reductions by Nissan and Honda. Supavud Saicheua, Chairman of the National Economic and Social Development Council, stated that negative impacts are occurring “faster than anticipated,” threatening the livelihoods of approximately 700,000 workers and the stability of the supply chain. In September, Thai automotive production fell by 6.08% to 120,319 units. While battery electric vehicle (BEV) production surged by 55.2%, internal combustion engine (ICE) production dropped by 27.78%. This decline was further compounded by supply chain disruptions from flooding and a 30.6% decrease in exports to the Middle East due to geopolitical tensions affecting shipping routes. On a global scale, Japanese automakers are facing shifting market rankings. Suzuki Motor Corp. has overtaken Honda Motor Co. as the second-largest Japanese automaker by global sales for the April to September period, supported by performance in India, where it holds approximately 40 percent of the passenger car market share. Suzuki recorded a 19.9 percent increase in global sales, reaching 1,824,006 units. Meanwhile, Toyota Motor Corp. reported its first decline in global sales and production in two years, with sales falling 4 percent to 5,059,014 units. While Toyota saw growth in North America and Europe due to hybrid demand, its sales in China fell by approximately 20 percent, marking eight consecutive months of decline. ## Claims - Toyota's sales in China fell by approximately 20 percent in September. (reported by 4 sources) - Rising gasoline prices in China are impacting demand for non-electric vehicles. (reported by 4 sources) - Suzuki Motor Corp. surpassed Honda Motor Co. to become the second-largest Japanese automaker in global sales for the April to September period. (reported by 3 sources) - Toyota's global sales fell by 4.0 percent to 5,059,000 units during the first half of the fiscal year. (reported by 2 sources) - Suzuki's global sales increased by 19.9 percent to 1.824 million units during the April to September period. (reported by 2 sources) - Honda's production in China has decreased by approximately 90 percent compared to its 2020 peak. (reported by 2 sources) - Toyota's global electric vehicle sales increased by 127.4 percent through September compared to the previous year. (reported by 1 source) - Suzuki's growth was driven by the Indian market, where it holds a 40 percent share of the passenger car segment. (reported by 1 source) ## Timeline ### 2026-10-31: Suzuki overtakes Honda in Japanese automotive sales Suzuki Motor Corp. has overtaken Honda as Japan's second-largest automaker by global sales, driven by record growth in India, while Honda and Toyota face declining sales in China. 3 sources. https://clstr.news/cluster/suzuki-overtakes-honda-in-japanese-automotive-sales ### 2026-10-29: Japanese automakers face shifting market shares amid China slump Suzuki has overtaken Honda as Japan's second-largest automaker by global sales, while Toyota faces its first sales decline in two years due to a persistent slump in the Chinese market. 14 sources. https://clstr.news/cluster/automotive-sector-faces-regional-challenges-in-china-and-thailand ### 2026-10-27: Thailand faces economic disruption from Chinese EV expansion The rapid influx of Chinese electric vehicles is disrupting Thailand's automotive sector, displacing Japanese manufacturers and threatening the jobs of roughly 700,000 people. 2 sources. https://clstr.news/cluster/thailand-faces-economic-disruption-from-chinese-ev-expansion --- Cite as: Thailand automotive industry market shift. CLSTR, https://clstr.news/situations/thailand-automotive-industry-market-shift