1 week Ago
Tri Petch Isuzu Sales, the local distributor of Isuzu vehicles, has joined a call for the government to jump-start stagnant pickup sales, as the market threatens to stymie the Thai economy. The company wants the government to address elevated household debt and implement stimulus measures. The high level of household debt is causing banks and car financing companies to be more cautious about granting auto loans.
Without an appropriate government response, the pickup market will continue to suffer, following a 39.5% plunge in sales to 137,456 units between January and October of 2024, the lowest level in 23 years. "Pickups are a product champion in Thailand," said Takashi Hata, president of Tri Petch Isuzu Sales, referring to Thailand being among the leaders in pickup manufacturing for domestic sales and export.
"The sluggish pickup market should cause a serious impact on the auto industry and even the overall economy. State help is necessary and urgent." Not only do pickup makers bear the brunt, but auto parts producers also cannot avoid the impact because pickup assembly utilises 80-90% of the total auto parts in the market, according to the Federation of Thai Industries' Auto Parts Industry Club.
On the buyers' side, many people do not buy pickups just for travelling purposes, but they also use the vehicles to operate their businesses. Ford Thailand, the production and distribution arm of US-based Ford Motor, earlier asked the government to talk with banks about possibly relaxing lending criteria to lift car sales, especially in the pickup segment. The Joint Standing Committee on Commerce, Industry and Banking also suggested the government set up a 5-billion-baht fund to provide loans for pickup buyers.
While it remains uncertain whether domestic pickup sales will improve this year, the Bangkok International Motor Expo, which was held from Nov 29 to Dec 10, 2024, helped automakers boost year-end car sales. Total car bookings stood at 54,513 vehicles, a slight increase from 53,248 in 2023, while in the motorcycle segment, bookings totalled 7,982 units, a rise from 7,323 units. The 12-day event was projected to generate 5.
5 billion baht to boost the economy, said Kwanchai Paphatphong, chairman of the Motor Expo Organising Committee..
