Vehicle sales in Thailand declined sharply by 24% year-on-year in the first four months, totalling only 46,738 units, according to the Asean Automotive Federation (Asean Autofed).
This marks a significant drop from the 59,530 units sold during the same period in 2023. Initially, projections had indicated a 6.1% growth in vehicle sales for 2024, following a difficult 2023 where sales fell by 8.7%.
Stricter loan criteria from financial institutions, driven by high household debt levels, have led to a revised forecast of an 18.1% contraction for vehicle sales in 2024.
The National Credit Bureau reported a 15% year-on-year increase in non-performing loans (NPLs) during the first four months of 2024, with defaults on automobile and home loans contributing to this rise, reinforcing the negative outlook for Thailand’s vehicle sales.
Economic growth is another concern, with GDP growth slowing to 1.5% year-on-year in the first quarter, down from 1.7% in the fourth quarter of 2023. Consequently, the country risks team has adjusted Thailand’s full-year growth forecast to 2.8% from the previous 3.0%, reflecting the latest economic conditions.
Source: The Thaiger