Report Thailand's Pickup Sales Rev Up with New Trade-In Scheme

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Picture courtesy of Rest of World

 

Thailand’s struggling pickup market is set for a revival thanks to a government scheme offering tax incentives on new vehicles when owners trade in their old models.

 

Sales of pickup trucks in Thailand have significantly declined, with figures showing a 17% drop from January to May this year. Stricter loan conditions, due to rising household debt, have been a major factor in this downturn.

 

In response, the government proposes allowing owners of pickup trucks aged 20 to 25 years to exchange them for new models, with substantial excise tax reductions.

 

Surapong Paisitpatanapong, the Federation of Thai Industries' Vice-chairman, supports the initiative, predicting potential sales boosts by 50,000 to 100,000 units. He also suggests expanding the scheme to include cars, which could further invigorate the automotive sector.

 

With around two million ageing vehicles on the roads, extending the scheme to vehicles five to eight years old could provide a vital lift, according to industry representatives.

 

Finance Minister Pichai Chunhavajira highlighted the scheme's dual benefits: modernising roads and boosting the local car industry. The Thai Credit Guarantee Corporation is expected to support this initiative by securing auto loans.

 

Although exports remain strong, with a 23% rise in car exports in May due to demand in Australia and the Middle East, domestic sales fell nearly 3% in the first five months of the year. However, a rise in car manufacturing, notably in electric and hybrid vehicles, offers a positive outlook.

 

Surapong urges for decisive action to restore consumer confidence, stating, “This trade-in scheme could be the spark that gets the engine running again.”

 

The success of the scheme could well be the jolt needed to steer the Thai automotive market back on track.

 

  Adapted by ASEAN Now from The Thaiger 2025-06-25