Initiative to Boost Pickup Rates

Tri Petch Isuzu Sales has urged the government to revitalize the sluggish pickup market, which poses a potential threat to the Thai economy.

The company’s call for action emphasizes the need for measures to tackle the rising household debt levels affecting consumer financing for vehicle purchases.

Prolonged high household debt has led to increased caution among banks and financing companies in approving auto loans, exacerbating the situation.

Without government intervention, sales in the pickup segment are predicted to continue their downward trend, reflecting a drastic 39.5% decline to 137,456 units sold from January to October 2024, marking the lowest figures in two decades.

“Pickups are a cornerstone of the automotive sector in Thailand,” stated a company representative, highlighting the nation’s prominent role in both manufacturing and exporting these vehicles.

“The ongoing challenges in the pickup market could significantly affect the automotive industry as a whole and even the wider economy. Immediate government support is essential.”

The impact extends beyond pickup manufacturers to include auto parts suppliers, as pickups require 80-90% of the total parts consumed in the market, according to industry data.

Additionally, consumers often purchase pickups not only for personal use but also for business operations, further underlining the market’s importance.

Recently, another automaker called on the government to engage with financial institutions to reconsider lending criteria, particularly within the pickup market.

The industry body has proposed the establishment of a 5-billion-baht fund to support loan accessibility for prospective pickup buyers.

While the outlook for pickup sales in the upcoming year remains uncertain, the recent Bangkok International Motor Expo, which took place from November 29 to December 10, 2024, contributed to a surge in year-end vehicle bookings.

Overall, car bookings rose to 54,513 units, up from 53,248 in the previous year, while motorcycle bookings increased to 7,982 units from 7,323.

The event is projected to generate an economic boost of approximately 5.5 billion baht, as reported by organizers.