Thailand is exploring a new initiative that would allow owners of pickup trucks aged between 20 to 25 years to trade in their vehicles for new ones, potentially accompanied by a tax discount.

This proposal was announced by Finance Minister Pichai Chunhavajira on Monday, who indicated that discussions are ongoing with relevant stakeholders, although specific details were not disclosed.

The consideration of this measure comes amid a challenging environment for domestic car sales, particularly for pickup trucks.

Sales in April showed a slight overall increase for the first time in nearly two years; however, pickup truck sales specifically continued to decline.

This downturn has been attributed to tighter credit conditions and rising household debt affecting consumer purchasing decisions.

The backdrop for this initiative is a broader context of economic difficulty facing the automobile sector in Thailand, which is Southeast Asia's largest automotive production base.

It serves as a critical export hub for major global car manufacturers including Toyota, Honda, and BYD of China.

Reports from earlier this year indicated that Thailand was in preliminary discussions regarding a broader car trade-in and scrapping scheme, aimed at addressing what is described as the most significant crisis in the automotive industry in decades.

In addition to the proposed trade-in measure, Minister Pichai mentioned that the government plans to introduce further measures aimed at providing debt relief and stabilizing local energy prices.

He expressed confidence that domestic energy prices would remain stable, provided that tensions in the Middle East do not escalate.

Pichai also noted that there had been no unusual movements in capital flows reported in the country.