Executives predict a gradual recovery for Thailand’s auto industry, citing the upcoming motor show as a potential catalyst for increased sales.
PUBLISHED: March 25, 2025, 11:20 AM
UPDATED: March 25, 2025, 4:50 PM
As Thailand’s auto industry grapples with a slow recovery from an extended downturn, key executives express optimism about the Bangkok International Motor Show’s ability to stimulate sales.
On the brink of the motor show, executives have voiced that the 1.7-trillion-baht sector may have “bottomed out,” as highlighted by Pongsak Lertrudeewattanavong, vice-president of a major automotive brand in Thailand, indicating significant potential for gradual improvement.
Thailand is recognized as a pivotal auto manufacturing hub, hosting prominent car manufacturers such as Toyota, Honda, and an array of emerging electric vehicle brands.
The motor show, which typically garners around 50,000 car orders annually, opens on Wednesday at Impact Muang Thong Thani, stretching its run through April 6. Recent data reveals a six-point-seven percent decrease in domestic car sales in February, a slight improvement over the twelve-point-three percent decline observed in January.
Car production in February saw a drop of thirteen-point-six percent, equating to 115,487 units, while exports declined eight-point-three percent due, in part, to intensifying competition and stringent emission regulations.
Challenges like escalating household debt—coupled with a staggering seventy percent auto loan rejection rate—pose significant hurdles for the sector’s recovery.
“While the less negative figures in February provide some hope, they do not signify a full recovery, as rejection rates for auto loans remain problematic,” noted an industry spokesperson.
The Federation of Thai Industries anticipates a two percent increase in car production for the year, following a twenty percent decline in 2024 that marked the lowest output in four years.
Local vehicle sales hit a fifteen-year low last year, but industry leaders project a rebound toward six hundred thousand units this year.
Strategic Adaptations in the Auto Sector
In response to stagnant domestic sales, automakers are implementing cost-cutting measures and launching promotional campaigns with the hope of boosting interest at the motor show.
The economic landscape is showing signs of improvement, with a fourteen percent increase in total Thai exports last month, bolstered by government incentives aimed at supporting the automotive sector.
Despite high household debt levels, industry leaders are cautiously optimistic about a gradual uptick in sales this year.
Automakers targeting the luxury market, like those debuting at last year’s show, are projecting significant growth, further uplifting sector confidence.
“Positive factors are emerging that may aid the market’s recovery, but uncertainties remain,” acknowledged an industry executive. “The full impact of these developments will take time to realize.”
