Improvement Expected in Thai Car Sales
Thai car sales are expected to recover in the year's second half as banks may relax lending criteria, according to the Federation of Thai Industries. This follows a sharp drop in sales due to stringent auto loan requirements. Optimism is bolstered by anticipated economic measures and increased government spending.
Sluggish car sales in Thailand are anticipated to improve in the second half of the year as banks are expected to relax lending criteria, according to the Federation of Thai Industries (FTI).
Car sales dropped significantly in the first seven months of 2024 due to the difficulty of securing auto loans, driven by banks' concerns over non-performing loans (NPLs) amid high household debt.
NPLs reached 250 billion baht in July, marking a 29.7% year-on-year increase.
Surapong Paisitpatanapong, vice-chairman of the FTI and spokesman for the Automotive Industry Club, expects that banks' stricter loan criteria, which have affected the financial sector, will be reconsidered.
Optimism is also fueled by government economic measures and budget spending.
From January to July, car sales fell by 23.7% year-on-year to 354,421 units, with vehicle sales in July alone down by 20.5% to 46,394 units.
Pure pickup sales particularly plummeted by 35.1% year-on-year in July.
An economic upturn is expected to revive pickup sales, aiding overall car market recovery.
Pongsak Lertruedeewattanavong, vice-president of MG Sales (Thailand), supports this optimistic outlook.
Car sales dropped significantly in the first seven months of 2024 due to the difficulty of securing auto loans, driven by banks' concerns over non-performing loans (NPLs) amid high household debt.
NPLs reached 250 billion baht in July, marking a 29.7% year-on-year increase.
Surapong Paisitpatanapong, vice-chairman of the FTI and spokesman for the Automotive Industry Club, expects that banks' stricter loan criteria, which have affected the financial sector, will be reconsidered.
Optimism is also fueled by government economic measures and budget spending.
From January to July, car sales fell by 23.7% year-on-year to 354,421 units, with vehicle sales in July alone down by 20.5% to 46,394 units.
Pure pickup sales particularly plummeted by 35.1% year-on-year in July.
An economic upturn is expected to revive pickup sales, aiding overall car market recovery.
Pongsak Lertruedeewattanavong, vice-president of MG Sales (Thailand), supports this optimistic outlook.
