The FederThe Federation of Thai Industries (FTI) is urging the government to introduce measures within two months to revive the domestic car market, as vehicle sales—particularly in the pickup segment—continue to decline. The industry has been hit by reduced consumer purchasing power and challenges in securing auto loans, compounded by Thailand’s high household debt levels.
According to Surapong Paisitpatanapong, vice-chairman of the FTI and spokesman for its Automotive Industry Club, pickup truck sales have dropped significantly over the past two years. This has led to a reduction in production by over 200,000 units, affecting workers in both car manufacturing and auto parts sectors. Many companies have responded by cutting working hours to three or four days a week and reducing wages to 75% of normal pay.
The FTI has called for measures to address economic slowdowns and household debt, including a proposed 5-billion-baht fund to boost auto loans for pickup buyers. This proposal was presented to Prime Minister Paetongtarn Shinawatra last year by the Joint Standing Committee on Commerce, Industry, and Banking.
The downturn is affecting both domestic and export markets. In January, total car sales in Thailand fell by over 12% year-on-year to 48,092 units, while exports plummeted 28.3% to 62,321 units—the lowest in nearly three years. Meanwhile, overall vehicle production dropped 24.6% year-on-year to 107,103 units.
Concerns over global trade policies have added to the industry’s woes, with uncertainty surrounding potential new US tariffs on car imports and increasing competition from lower-priced Chinese vehicles.
The automotive sector plays a vital role in Thailand’s economy, contributing 30% of the country’s GDP and employing 16% of its workforce. The industry’s struggles have raised concerns among officials and business leaders, who are calling for prompt action to prevent further economic fallout.ation of Thai Industries (FTI) is urging the government to introduce measures within two months to revive the domestic car market, as vehicle sales—particularly in the pickup segment—continue to decline. The industry has been hit by reduced consumer purchasing power and challenges in securing auto loans, compounded by Thailand’s high household debt levels.
According to Surapong Paisitpatanapong, vice-chairman of the FTI and spokesman for its Automotive Industry Club, pickup truck sales have dropped significantly over the past two years. This has led to a reduction in production by over 200,000 units, affecting workers in both car manufacturing and auto parts sectors. Many companies have responded by cutting working hours to three or four days a week and reducing wages to 75% of normal pay.
The FTI has called for measures to address economic slowdowns and household debt, including a proposed 5-billion-baht fund to boost auto loans for pickup buyers. This proposal was presented to Prime Minister Paetongtarn Shinawatra last year by the Joint Standing Committee on Commerce, Industry, and Banking.
The downturn is affecting both domestic and export markets. In January, total car sales in Thailand fell by over 12% year-on-year to 48,092 units, while exports plummeted 28.3% to 62,321 units—the lowest in nearly three years. Meanwhile, overall vehicle production dropped 24.6% year-on-year to 107,103 units.
Concerns over global trade policies have added to the industry’s woes, with uncertainty surrounding potential new US tariffs on car imports and increasing competition from lower-priced Chinese vehicles.
The automotive sector plays a vital role in Thailand’s economy, contributing 30% of the country’s GDP and employing 16% of its workforce. The industry’s struggles have raised concerns among officials and business leaders, who are calling for prompt action to prevent further economic fallout.
