Car production in Thailand rose 16.48% in May from a year earlier to 150,532 units, as a shortage of microchips eased, the Federation of Thai Industries (FTI) said on Thursday.
In April, car production dipped 0.13% year-on-year.
Domestic car sales increased 0.55% in May year-on-year to 65,088 cars, after April's 6.14% drop, said Surapong Paisitpattanapong, a spokesperson for FTI's automotive industry division.
Trucks sales, however, contracted due to tighter auto loans, he added.
Thailand is a regional vehicle production and export base for some of the world's top car makers, including Toyota and Honda.
Thailand is being urged to step up proactive measures to promote the electric vehicle (EV) industry, focusing on stimulating the domestic market by encouraging the use of electric cars, at the same time promoting the export of EVs and related components.
According to the Department of Land Transport, more than 32,000 EVs were sold in the country during the first five months of this year.