In 2026, Thailand’s tire industry is undergoing a profound structural transition.
The booming global electric vehicle market has injected strong impetus into its passenger car tire exports, but anti-dumping tariff barriers against commercial vehicle tires in major markets have severely damaged its traditional areas of advantage.
This “ice and fire” pattern reflects the strategic dilemma and transformation pressure of Thailand’s tire industry under the changes in the global trade environment.
The demand for electric vehicles has driven the export of passenger car tires to grow against the trend.
The latest data from the Thailand Trade Policy and Strategy Office (TPSO) show that Thailand’s passenger car tire exports will reach US$3.88 billion in 2025, a year-on-year increase of 2.1%. This growth is mainly due to the rapid expansion of the global electric vehicle market.
As the penetration rate of new energy vehicles continues to increase, the demand for special tires with low rolling resistance and high durability has surged. Thailand has taken the lead in this segment by virtue of its mature tire manufacturing system and cost advantages.
As Thailand’s largest tire export market, the United States will contribute approximately US$2 billion in exports in 2025, with low aspect ratio tires under 17 inches suitable for electric vehicle brands becoming the main driver of growth.
This growth trend of Thailand’s tire industry has distinct structural characteristics.
On the one hand, leading domestic companies such as Siam Tire have built three tire production lines specifically for electric vehicles, with an annual production capacity of 12 million. On the other hand, international brands such as Michelin and Goodyear are also accelerating technology iterations in factories in Thailand, positioning Thailand as the R&D and manufacturing center for electric vehicle tires in Southeast Asia.
This industrial upgrading not only promotes export growth, but also moves Thailand’s position in the global tire value chain from pure OEM production to technology output.
In stark contrast to the growth trend of passenger car tires, Thailand’s truck and bus tire exports are encountering unprecedented trade restrictions.
The tariff differential policy in the U.S. market became the straw that broke the camel’s back: Thai small car tires were only levied an anti-dumping tax of 3.16%, while the tax rate for large car tires was as high as 30.36%. This tax rate was not only much higher than the 15% level for similar Japanese products, but also eliminated the price competitiveness of Thai products in the U.S. market.
The direct consequence is that in the first quarter of 2026, U.S. imports of truck and bus tires from Thailand plummeted by 24%, and passenger tires also fell by 15% year-on-year.
The spread of trade protectionism is not limited to the United States.
The Eurasian Economic Union launched an anti-dumping investigation into Thai truck and bus tires in November 2025, and initially determined a dumping margin of 24.17%; Brazil decided to continue to impose an anti-dumping tax of US$1.35 per kilogram on Thai tires in its second anti-dumping sunset review at the end of 2025 for a period of five years.
Japanese tire companies have taken the lead in taking countermeasures. Some brands have begun to move large tire production lines back to Thailand from Thailand to avoid tariff risks. This trend may trigger a chain reaction and shake Thailand’s status as a major global tire exporter.
Thailand’s structural challenges remain prominent.
The Thai tire industry has long relied on low-cost labor and an export-oriented model, and is still subject to international suppliers in areas such as core materials and high-end manufacturing equipment.
How to build a two-wheel drive system of “technological independence + market diversification” in a global environment with rising trade protectionism will be the key to whether Thailand’s tire industry can achieve sustainable development.
