Thailand automotive sales in 2024
Electric cars (EVs) are the big thing. Even though the first quarter of 2023 saw car manufacturing drop by 18.4%, new assembly lines for EVs are a good sign.
Monthly sales reports
Sales in 2024 have been mixed. In April, sales dropped 21.5% compared to the previous year, with 46,738 units sold. From January to April, total sales were 210,494 units, down 23.9% from last year. Economic problems and stricter car loan rules by banks have made things tough.
Pickups and pickup passenger vehicles took a big hit. In March, pure pickup sales dropped by 45.2%, and pickup passenger vehicles by 46.6%, with 16,212 and 3,436 units sold respectively.
What’s affecting the market
Several factors are shaping the market. Banks have tightened car loan rules due to high household debt, which is at 91% of GDP compared to 60% in other emerging economies. This has reduced buying power.
Exports are also down, with a 36% drop from January to April, totalling 340,685 units. This has hurt domestic production and sales. Government spending and investment, along with more tourism, should help in the second half of 2024.
Economic policies impact
Stricter loan rules and higher interest rates have hit the car market hard. These factors led to a 29.8% drop in domestic car sales in March 2024. Getting loans has become tougher, slowing down the market. More accessible credit could help boost sales.
Government actions are also crucial. Delays in state budget spending have hurt the market, but economic stimulus measures could drive 3.5% growth this year. Subsidies for electric and hybrid vehicles should help rejuvenate the sector.
Production trends
Car production in Thailand has dropped in 2024. Passenger car production fell by 14.68% in January, and pickup truck production dropped by 33.62%. Overall vehicle production for local sales decreased by 12.46% in January.
However, export production showed some positives. In January, exported cars increased by 12.2%, offsetting some domestic declines. From January to April, total car exports fell by 3.7% to 340,685 units. Despite global economic challenges, the rise in exported EVs is promising.
Electric vehicle market
The car market in Thailand is changing fast, especially with EVs. Government subsidies and new regulations are driving this shift. Experts are hopeful that the market will pick up later this year with help from economic stimulus and more tourism. While there are challenges, the export market, especially for EVs, looks promising. The efforts of manufacturers and policymakers will be key to navigating these changes.
