Used Car Market Expected to Grow in Thailand
The used car market in Thailand is expected to grow in late 2024, driven by eased lending criteria. This is likely to benefit small and medium-sized enterprises, which dominate the market. However, the rise of electric vehicles and stringent loan conditions may pose challenges in 2025.
The used car market in Thailand is anticipated to see growth in the latter half of 2024.
The Association of Used Car has announced that financial service providers may ease lending criteria for prospective buyers, after discussions about the stringent loan conditions.
Vichai Suwanasilar, president of the association, mentioned that banks and finance companies have agreed to relax lending conditions if the quality of the vehicle is certified by the association.
This easing is expected to particularly benefit small and medium-sized enterprises, which make up the majority of the 400-500 local and foreign used car companies in Thailand.
In 2023, about 10% of these companies shut down due to fewer loans granted, weak consumer purchasing power, economic slowdown, and the rise of electric vehicle (EV) sales.
The influx of EVs has created a price war, delaying consumer purchases of both new and used cars.
Vichai predicts that the market may face challenges with shortages between the first and second quarters of 2025 due to strict car loan criteria this year.
Pattanadesh Asasappakij, chairman of the 2024 Fast Auto Show Thailand, believes the event from July 3-7 will boost sales.
He estimates the market value to be around one hundred billion baht, likely growing further due to government budget spending and new economic stimulus measures.
The Association of Used Car has announced that financial service providers may ease lending criteria for prospective buyers, after discussions about the stringent loan conditions.
Vichai Suwanasilar, president of the association, mentioned that banks and finance companies have agreed to relax lending conditions if the quality of the vehicle is certified by the association.
This easing is expected to particularly benefit small and medium-sized enterprises, which make up the majority of the 400-500 local and foreign used car companies in Thailand.
In 2023, about 10% of these companies shut down due to fewer loans granted, weak consumer purchasing power, economic slowdown, and the rise of electric vehicle (EV) sales.
The influx of EVs has created a price war, delaying consumer purchases of both new and used cars.
Vichai predicts that the market may face challenges with shortages between the first and second quarters of 2025 due to strict car loan criteria this year.
Pattanadesh Asasappakij, chairman of the 2024 Fast Auto Show Thailand, believes the event from July 3-7 will boost sales.
He estimates the market value to be around one hundred billion baht, likely growing further due to government budget spending and new economic stimulus measures.
