Thailand mulls motorcycle cut amid China slowdown, US tariff fears
Tourism drop and global trade jitters threaten to stall momentum in key manufacturing sector
The Federation of Thai Industries (FTI) is contemplating a reduction in Thailand’s motorcycle manufacturing target, despite an increase in production in the first quarter of this year.
The decision arises from a sluggish domestic economy, decreased foreign tourist arrivals, especially from China, and uncertainties linked to US President Donald Trump’s tariffs.
Surapong Paisitpatanapong, vice-chairman of the FTI and spokesperson for the federation’s Automotive Industry Club, stated, “It is another difficult year for the automotive industry and related sectors. We plan to adjust the target in the middle of this year.”
Initially, the club anticipated a 0.1% year-on-year (YOY) increase in motorcycle manufacturing in Thailand by this year, reaching 2.1 million units. In the first quarter, production rose by 0.71% YOY to 664,485 units, comprising completely built-up (CBU) units, which decreased by 0.36%, and completely knocked-down (CKB) units, which increased by 5.26%. In March, production reached 233,782 units, marking a 6.54% YOY rise. However, economic conditions cast doubt on continued expansion throughout 2025.
The Association of Thai Travel Agents (ATTA) reported a decline in Chinese tourist arrivals. Following the kidnapping of Chinese actor Wang Xing and the earthquake affecting Myanmar and Thailand in late March, chartered flights decreased by over 20%. A China Trading Desk study in the first quarter, surveying 15,082 Chinese travellers, showed Thailand’s popularity dropping to seventh place from fourth in the last quarter of 2024.
ATTA president Thanapol Cheewarattanaporn highlighted the need for Thailand to urgently address the slowdown in the Chinese market, describing it as a comatose patient, contrasting with other markets showing stable growth. The Automotive Industry Club noted the correlation between foreign tourists and motorcycle production, as tourism activities boost motorcycle demand, with many tourists opting to ride motorcycles during their visit, reported Bangkok Post.
In the first quarter of this year, domestic motorcycle sales increased by 1.7% YOY to 455,244 units. However, motorcycle exports, including both CBU and CKB units, decreased by 4.5% YOY to 242,096 units during the same period. Key export markets for Thai motorcycles include the US, the UK, Belgium, and Japan.
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