Thailand’s auto market in the grip of a slowdown as sales slump 24%

Commercial vehicles, such as pickups and PPVs, experienced the biggest contraction in sales, dropping 41% YoY in the first five months to 91,765 units. However, the xEV electric vehicle segment continues to see growth in sales.

Total vehicle sales from January to May by segment

Total cars: 260,365 units sold, down 23.8%
1. Toyota - 97,736 units, down 15.7%, market share 37.5%
2. Isuzu - 39,183 units, down 46.9%, market share 15%
3. Honda - 37,374 units, down 4.3%, market share 14.4%

Passenger cars: 101,589 units sold, down 17.9%
1. Toyota - 27,892 units, down 36.1%, market share 27.5%
2. Honda - 21,250 units, down 18.2%, market share 20.9%
3. Mitsubishi - 8,191 units, down 0.4%, market share 8.1%

Commercial vehicles: 158,776 units sold, down 27.1%
1. Toyota - 69,844 units, down 3.5%, market share 44%
2. Isuzu - 39,183 units, down 46.9%, market share 24.7%
3. Honda - 16,124 units, up 23.2%, market share 10.2%

1-Ton Pickup Trucks (Pure Pickup and PPV): 91,765 units sold, down 41%                                                        1. Toyota - 41,750 units, down 30.1%, market share 45.5%
2. Isuzu - 34,445 units, down 49%, market share 37.5%
3. Ford - 9,645 units, down 42.9%, market share 10.5%

Sales of modified pickup trucks (in the 1-ton pickup market): 16,255 units
Toyota - 5,999 units
Isuzu - 5,110 units
Ford - 3,694 units
Mitsubishi - 1,255 units
Nissan - 197 units

Pure Pickup Trucks: 75,510 units sold, down 40.8%
1. Toyota - 35,751 units, down 27.8%, market share 47.3%
2. Isuzu - 29,335 units, down 49.1%, market share 38.8%
3. Ford - 5,951 units, down 49.6%, market share 7.9%

Expert insights

Supakorn Rattanawaraha, deputy managing director of Toyota Motor Thailand, said that the car market in June was expected to improve compared to May. However, it was likely to contract compared to the same period last year due to the overall economic situation, slow recovery of consumer confidence, and high credit rejection rates.

The Federation of Thai Industries (FTI) revealed that the tightening of credit policies by banks had affected sales of new cars. 

Surapong Paisitpatanapong, adviser to the chairman of the automotive industry group and spokesman for the automotive industry group at the FTI, explained that the main factor behind the decline in sales of new cars was the stringent policies of financial institutions in approving loans due to high household debt and the slow growth of the domestic economy, partly caused by delays in the disbursement of the 2024 fiscal budget.

This situation has led to reduced government investment, with the industrial production index declining for more than 10 consecutive months. Many factories have reduced working hours, and tens of thousands of employees have been laid off, leading to income loss. Consequently, people are cautious with their spending due to uncertainty in income, alongside rising costs of food, transportation, and energy.

"However, if in the second half of the year, the government approves budget spending and implements economic stimulus plans, the overall Thai economy is expected to improve," said Surapong. “Nonetheless, it is hoped that the cost of goods will not increase. Whether the economy will grow by 3% remains uncertain, especially if car production, car sales, and real estate sales remain negative, as both industries have extensive downstream industries and a large workforce, significantly impacting domestic economic growth," said Surapong.