Thailand's auto production increased in June as manufacturing for exports soared, but local sales dropped, data showed on Tuesday.

Auto manufacturers produced 145,557 vehicles in the country last month, slightly up 1.78 percent from a year earlier due to lower production for the domestic market, according to the Federation of Thai Industries (FTI).

The country's finished car exports jumped 20.22 percent year on year in June to 88,826 units as manufacturers produced more passenger cars for exports, according to Surapong Paisitpattanapong, the FTI's automotive industry club vice president and spokesperson.

The June finished car export value soared 30.72 percent from a year earlier, totaling 55.92 billion baht (about 1.62 billion U.S. dollars), due to higher shipments to Asia, Australia, and Middle East markets, Surapong told a news conference.

Domestic auto sales fell 5.16 percent year on year last month to 64,440 units, reversing from a 0.55 percent increase in May, as banks tightened auto loans due to high household debt levels, he said.

He also noted that the FTI lowered its car production target to 1,900,000 units this year from 1,950,000 units projected in January as imported electric vehicles now share more than 5 percent of local market sales, affecting demand for domestic production.