Throttle warning: Thailand’s motorcycle market may hit the brakes
Sales outpace cars but industry chiefs fear storm ahead amid shaky economy, political drama
Thailand’s motorcycle market is revving up but the industry’s top brass are warning it could stall in the slow lane before year’s end.
While production and sales of motorcycles jumped in the first five months of 2025, the Federation of Thai Industries (FTI) says a cocktail of weak consumer spending, tight lending, and political unrest could derail the sector.
Surapong Paisitpatanapong, FTI Vice Chairman, and spokesman for the federation’s Automotive Industry Club acknowledged it had been “another difficult year for the automotive industry and related sectors.”
“We plan to adjust the target in the middle of this year.”
From January to May, Thailand churned out over 1 million bikes, up 5% year-on-year. That includes 865,858 completely built-up units (+3%) and 198,523 completely knocked-down units (+13%).
Domestic sales also rose, with 751,848 motorcycles sold, a 1.6% increase from the same period last year, comfortably outpacing car sales, which slumped nearly 3% to 252,615 units.
But the upbeat numbers may be short-lived, Bangkok Post reported.
Surapong warned that consumer purchasing power remains fragile, with banks and car financing firms tightening loan criteria due to Thailand’s sky-high household debt, which hit 16.3 trillion baht (87.4% of GDP) in Q1 2025, according to a Bank of Thailand report.
“Household debt has slightly dropped, but it’s still dangerously high. That’s made lenders more cautious and buyers less confident.”
Industry jitters are compounded by Thailand’s political instability, which is rattling public trust and investor confidence.
A leaked audio clip allegedly capturing a conversation between PM Paetongtarn Shinawatra and ex-Cambodian leader Hun Sen about a territorial dispute has thrown the government into turmoil.
The 38 year old Thai premier is now facing a petition from senators to boot her out of office, with the matter submitted to the Constitutional Court.
The FTI had already considered cutting Thailand’s motorbike production targets in May, citing economic drag, plummeting Chinese tourist arrivals, and trade uncertainty fuelled by Donald Trump’s tariffs.
Surapong concluded it has been another difficult year for the automotive industry and related sectors.
“We plan to adjust the targetthis year.”
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