Significant drop in vehicle sales recorded from Jan-April 2024

The overall performance of Thailand's automotive industry in the first four months of 2024 has continued to slow, with 210,494 new vehicles sold in this period, representing a decline of 23.9%.

Breaking down the sales by segment reveals that 82,903 passenger cars were sold, a decrease of 15.2%. In the commercial vehicle market, 127,591 units were sold, marking a significant drop of 28.7%.

The top 10 best-selling car brands in Thailand from January to April 2024 were:

Toyota: 78,232 units sold, down 17.4%, market share 37.2%

Isuzu: 31,300 units sold, down 48.3%, market share 14.9%

Honda: 30,847 units sold, down 4.7%, market share 14.7%

BYD: 10,944 units sold, up 50.2%, market share 5.2%

Mitsubishi: 9,804 units sold, down 29.1%, market share 4.7%

Ford: 7,950 units sold, down 42.9%, market share of 3.8%

MG: 6,283 units sold, down 24.2%, market share of 3.0%

Nissan: 3,726 units sold, down 41.8%, market share of 1.8%

Mazda: 3,438 units sold, down 47.1%, market share of 1.6%

Great Wall Motor: 3,131 units sold, down 14.8%, market share of 1.5%

In April 2024, the overall car market in Thailand saw sales of 46,738 units, a decrease of 21.5%. Broken down by segment, this represents 17,288 passenger cars, a decline of 14.4% and 29,450 commercial vehicles, a decrease of 25.1%.

The segment with the most significant decline was pickup trucks, with sales of 17,689 units, a sharp decrease of 34%.

The EV market saw a total of 15,161 units sold, accounting for 32.4% of the total automotive market. This represents a growth of 27% compared to the same period last year. Sales of hybrid electric vehicles (HEV) grew by 56% with 10,208 units sold, while sales of battery electric vehicles (BEV) stood at 4,282 units, a decrease of 4%.

Factors contributing to the slowdown in new car sales in the country include the overall economic situation, household debt and the tightening of credit by financial institutions. However, car manufacturers anticipate that the automotive market will improve in May, although it will still be lower than the same period last year. This is influenced by the overall economy and the consumer confidence index, which is recovering slowly.

In addition to the slowdown in new car sales in the country, the manufacturing sector has also experienced a decline. From January to April 2024, car production in Thailand decreased by 17.05%, totaling 518,790 units. Domestic car sales reached 210,494 units, down by 23.9%. Meanwhile, the export of fully assembled cars amounted to 340,685 units, marking a decrease of 3.66%.

Due to the decrease in car production, sales, and exports, the Automotive Industry Club of the Federation of Thai Industries (FTI) may consider adjusting its production targets for 2024, especially the sales targets within the country. Previously, there were projections for car production in 2024 to reach 1.9 million units, with 1,150,000 units intended for export and 750,000 units for domestic sales.

Surapong Paisitpatanapong, advisor to the Chairman of the Automotive Industry Group, revealed that factors contributing to the decrease in car sales include the tightening of car loan approvals by financial institutions and the slow economic growth due to delays in the fiscal budget for 2024. This has resulted in a significant reduction in government spending, leading to weakened consumer purchasing power.

“When the budget for the fiscal year 2024 has taken effect, we request the government's assistance to stimulate car purchases, especially domestically produced pickup trucks and cars utilising components manufactured within the country, which account for over 90%. This will promote increased production, job creation, and greater employment opportunities for the people. Additionally, the government's revenue from specific business tax, value-added tax, and personal income tax for both corporations and individuals will increase. Consequently, the economy will experience higher growth rates,” Surapong said.