2 weeks Ago
Domestic sales of luxury cars are expected to decline to 30,000 vehicles by the end of 2024 as prospective buyers in the premium car segment have barely been able to avoid the impact of the sluggish economy and the high level of household debt, says Wearnes Automotive Thailand, the importer and distributor of Lotus Cars, the British premium sports car maker. The volume of luxury car sales in 2023 tallied 40,000. The slow rate of economic growth, which stood at only 1.
5% in the first quarter of 2024, as well as the stricter criteria adopted by banks and car finance firms in assessing auto loan applications for fear of non-performing loans had a negative effect across the automotive industry, said Teeraphong Rodloy, country manager of Wearnes Automotive Thailand. "Overall sales in the luxury car segment were affected by these economic circumstances," he said. However, compared with other segments, particularly pickups, luxury car sales faced less of an impact as prospective buyers in this category typically have a high level of purchasing power.
Pickup sales plunged to the lowest level in 23 years, said Ratthakarn Jutasen, managing director of Ford Thailand, when assessing domestic pickup sales last year. In October 2024 alone, pickup sales decreased by 41.6% year-on-year to 10,896 units.
From January to October, sales of pickups plummeted 39.5% year-on-year to 137,456 units, according to a monthly report by the Federation of Thai Industries (FTI) in 2024. The luxury car segment has yet to face a particularly tough situation because demand in this segment is not strongly affected by the loan difficulties, said Surapong Paisitpatanapong, vice-chairman of the FTI and the federation's Automotive Industry Club.
Wearnes Automotive Thailand saw its sales volume exceed the 2024 target, which was set at 200 vehicles. "The sales were still driven by demand among buyers whose lifestyles align with driving a luxury car," said Mr Teeraphong. Lotus Cars also introduced to the Thai market the "Lotus Chapman Bespoke", a battery electric vehicle.
Thailand is the second country where the company has launched this model. In Mr Teeraphong's opinion, sellers of luxury cars cannot be complacent regarding the current conditions. He expects competition in this category to intensify in 2025, which may lead to some sellers adopting a significant price-cutting policy if they do not resort to an outright price war.
.
