Floods in Chonburi and Rayong Halt Auto Production; STANLY, SAT, AH at Risk

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3▲0 ▼5Impact / 5
Summary · why it matters

Flooding in Chonburi and Rayong, where accumulated rainfall exceeded 320 mm over three days, has left suppliers unable to deliver parts on a just-in-time basis, forcing automakers to temporarily halt production. Honda suspended operations at its Prachinburi and Ayutthaya plants from October 2 to 6, 2026, and will resume production on October 7, adding shifts to make up lost output. Toyota halted three plants, Samrong, Ban Pho and Gateway, as well as Toyota Auto Works, at least through October 2, describing the move as a temporary stoppage while it waits for transport routes to recover rather than a structural capacity cut. The Federation of Thai Industries estimates damage to the automotive supply chain of at least 1,018 million baht and is maintaining its 2026 vehicle production target of 1.45 million units. Krungsri Securities views the impact as slightly negative in the short term, expecting the two major automakers to lose roughly one week of October output, though most of it should be recovered in November and December through added shifts, making the effect a shift in production rather than a permanent loss. However, overtime costs and freight expenses could pressure gross profit margins in the fourth quarter of 2026. STANLY is seen as the most affected because of its heavy reliance on Honda, which accounts for 33% of its revenue, while SAT and AH are expected to be affected indirectly through overall industry output. The sector view remains bearish.

Impact on assets 5

Consumer Discretionary▼ · 3 stocks
Electrification & Mobility▼ · 2 stocks
Toyota Motor Corp.
7203
▼ NegativeSupplyrelevance

Toyota halted three plants plus Toyota Auto Works at least through October 2 while waiting for transport routes to recover.

Honda Motor Co., Ltd.
7267
▼ NegativeSupplyrelevance

Honda suspended operations at its Prachinburi and Ayutthaya plants from October 2 to 6, 2026, because suppliers could not deliver parts.

Off-coverage companies 1

Krungsri Securities Public Company LimitedPrivate± Mixed
relevance

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