Ford Thailand urges support for ICE car sector amid EV rise
Ford Thailand is urging the government to extend support to companies in the internal combustion engine (ICE) car segment, particularly motorcycle manufacturers, who are struggling to adapt to the rapid expansion of the electric vehicle (EV) market.
Despite the implementation of measures such as tax cuts and subsidies to promote the EV industry, ICE sector operators have yet to see government initiatives to help them manage the disruptions in the automotive industry, according to Ford Thailand Managing Director Ratthakarn Jutasen.
“Entrepreneurs of ICE-related businesses are old friends of the government. They helped develop automotive supply chains for the country, The government must do something to help them because the whole automotive industry is currently weak.”
Ford is calling for measures that address banks’ stricter criteria for granting auto loans amid high household debt levels. This difficulty in accessing loans has significantly contributed to a drop in domestic car sales this year.
Global car manufacturers and the Thailand Leasing Association recently engaged with the Bank of Thailand to explore solutions to this issue. They are advocating for the central bank to relax its responsible lending campaign, which was designed to tackle the severe household debt problem.
Responsible lending aims to improve the quality of household debt and reduce the debt ratio over the long term. Currently, the country’s household debt-to-GDP ratio stands at a high of 91%.
Ford Thailand projects domestic car sales for 2024 to reach 640,000 units, a reduction from its earlier forecast of 820,000-830,000 units, primarily due to Thailand’s sluggish economic growth.
Car sales in the country during the second half of this year are expected to rise by 12-13%, driven by government spending, stimulus measures, and the ongoing recovery of tourism.
We believe the sales volume should reach 54,000 to 55,000 units, attaining the target as said Ratthakarn.
In the first half of this year, car sales under the Ford brand totalled 11,282 units, giving the company a market share of 8-9%. Ford achieved the third-highest number of car sales during that period, according to Ratthakarn, reported Bangkok Post.
