According to foreign media reports, Thailand is working hard to provide guarantees for pickup loans recently. Pickup trucks occupy a key position in Thailand's auto manufacturing industry, which Thailand has taken to boost the downturn in the auto industry, with production falling to its lowest level in four years in 2024.
Before the Bangkok International Auto Show on March 26, the Thai government announced that it would provide a support program worth 5 billion baht (about 147.8 million US dollars) over the next seven years. "The plan will reduce credit risks and incentivize financial institutions to provide loans," said Paopoom Rojanasakul, deputy minister of the finance ministry in Thailand. He also added that the plan will increase sales of pickup trucks by 6,250 units.
This move is the latest support measure from the Thai government to the automotive industry. The development of Thailand's auto industry has been affected as credit conditions tightened due to the soaring household debt in Thailand. In 2024, Thailand's household debt reached 89.0% of its GDP, making it one of the countries with the highest proportion of household debt in Asia.
Thailand is the largest automobile production center in Southeast Asia and is also the export base of well-known automobile manufacturers such as Toyota and Honda. However, Thailand's automobile exports fell by 8.8% in 2024, while domestic sales fell sharply by 26%.
In January this year, Thailand's automobile production fell for the 18th consecutive month, a sharp drop of more than 24% year-on-year to 107,103 vehicles.
It is reported that a major factor in the decline in car sales in Thailand is that in Thailand, people find it difficult to obtain pickup truck loans, which usually account for one-third of domestic car sales in Thailand. In recent years, nearly half of the cars produced in Thailand are sold domestically.
In response to the long-term weakness of the automotive industry, Thailand is relying on investment in the electric vehicle field to promote the development of the automotive industry, and has attracted Chinese electric vehicle brands such as BYD and Great Wall Motors. These Chinese automakers have invested more than $3 billion in the Thai auto industry.
The Thai government has also introduced other policies, including tax benefits for plug-in hybrid cars, while Japanese automakers are also proposing trade-in and scrap plans in Thailand to boost car sales.