Report Thailand’s Car Market Faces Turbulence Amid Dealer Closures

[snoop1130]

Picture courtesy of Khaosod

 

Thailand’s car market is currently navigating challenging terrain as economic and political headwinds threaten its stability. According to the Kasikorn Research Centre, more than 50 car dealerships may shut their doors this year, signalling a significant shift in the industry landscape.

 

Production Targets in Jeopardy

 

Surapong Paisitpatanapong, spokesperson for the Automotive Industry Group, indicates that Thailand’s ambitious vehicle production target of 1.5 million units by 2025 is likely to be downgraded. Economic uncertainties, coupled with lingering impacts from previous US tariffs, have dulled the competitiveness of Thai automobiles on the global stage.

 

With production already experiencing a downturn of 7.83% in the first five months of the year, reaching 594,492 units, the outlook remains bleak. Although May saw a 10% production increase, driven primarily by electric vehicles (EVs), overall targets seem increasingly distant.

 

Dealer Struggles and Strategic Shifts

 

Dealers are grappling with rising expenses due to unsold inventory and high interest rates, as well as a predicted contraction in sales to 565,000 units by 2025. Some dealerships have started rethinking their strategies by transforming into sales-only entities, expanding service operations, or pivoting towards Chinese car brands.

 

Contraction and Expansion: A Market in Flux

 

The total number of car dealerships is expected to decrease from 2,197 in 2024 to about 2,146 by 2025. Japanese and Western brands are expected to bear the brunt, while Chinese manufacturers continue to make inroads, particularly in the BEV and plug-in hybrid sectors.

 

Chinese brands, despite their growth, are also encountering headwinds. NETA, an EV brand, is contending with liquidity issues affecting its Thai operations, leading to a reduction in its dealer network.

 

Changes Among Luxurious Brands

 

Mercedes-Benz Thailand has also experienced changes. The Benz Star Flag dealership will cease to be an official service centre by July 2025. Similarly, Benz Metro Autohaus will transition to representing a new Chinese brand yet to debut in Thailand.

 

A Mixed Outlook for Japanese Giants

 

Japanese carmakers are cautiously optimistic. Toyota anticipates a 5% sales increase, aiming for a market share of 38.5% this year. Meanwhile, Suzuki predicts a more modest scenario, with expected declines attributed to diminishing purchasing power and political instability.

 

To combat these challenges, Japanese manufacturers are focusing on enhancing after-sales services. Toyota has rolled out a comprehensive service campaign across its centres, and Suzuki is expanding its service network to boost customer satisfaction.

 

In conclusion, Thailand’s car market is in the throes of transformation, requiring adaptability and strategic pivots as stakeholders strive to navigate economic obstacles and shifting consumer preferences. As Chinese brands gain traction, traditional manufacturers remain determined to maintain their competitive edge in this evolving landscape.

 

  Adapted by ASEAN Now from Khaosod 2025-07-04

 

 

[JBChiangRai]

I used to love Toyota.

 

Nowadays, I don’t believe a word they say.

[billd766]

The MG dealers here in Kamphaeng Phet closed its dealership down a couple of months ago.

[AndyAndyAndy]

5 hours ago, JBChiangRai said:

I used to love Toyota.

 

Nowadays, I don’t believe a word they say.

 

Why?

[JBChiangRai]

Here's a breakdown of some key areas where Toyota has been accused of breaking promises: 

1. Handling of Safety Recalls and Unintended Acceleration Issues: 

• Initial Denial and Delay:

  Toyota initially downplayed or denied reports of unintended acceleration in some of its vehicles, which led to accidents, injuries, and even fatalities. 

   
• Hiding Information:

  ABC News reports that Toyota was forced to "admit" it had "misled U.S. consumers by concealing and making deceptive statements about two safety related issues affecting its vehicles". 

   
• Massive Recalls:

  The issue led to the recall of millions of vehicles globally, causing financial losses and damaging the company's reputation. 

   
• Impact on Customer Trust:

  Change Management Insight notesthat Toyota's initial denial significantly impacted customer trust, with many questioning the brand's commitment to safety. 

   

2. Alleged Broken Promises to Minority Communities: 

• Advertising Disparities: The Citizen Newspaper Group reportsthat Toyota was accused of not fulfilling promises to advertise in African American newspapers after spending millions in mainstream publications following a safety recall. 
   

3. Political Donations and Alignment with Election Deniers: 

• Supporting Election Objectors:Common Cause reports that Toyota's political action committee (PAC) contributed to the campaigns of individuals who objected to the 2020 election results, despite the company previously stating it would not support such candidates. 
   

In summary, Toyota has faced criticism for breaking promises related to safety issues, advertising practices, and political donations. These instances have raised concerns about the company's integrity and commitment to its stated values. 
 

Then there’s its activity regarding EV’s…

• Delayed EV Launches:

  Toyota has postponed the launch of some of its planned EV models, including a new electric SUV that was initially slated for 2027 but is now expected in 2028. 

   
• Focus on Hybrids:

  Toyota's chairman, Akio Toyoda, has been a vocal opponent of EVs and stated they would never surpass a 30% market share, suggesting a continued focus on hybrid technology. 

   
• Alternative Fuel Strategies:

  Toyota has also expressed interest in synthetic fuels and hydrogen as potential alternative fuel sources, further demonstrating a diversified approach beyond fully electric vehicles. 

   
• bZ4X Issues:

  The bZ4X, Toyota's first mass-produced EV, faced a recall due to a potential wheel detachment issue, which led to a sales suspension and further raised questions about the company's EV readiness. 

   
• Commercial Failure of Mirai:

  Toyota has acknowledged the commercial failure of the Mirai, its hydrogen fuel cell vehicle, which has further fueled criticism regarding the company's commitment to alternative fuel technologies. 

   
• Investor Concerns:

  Some investors and environmental groups have voiced concerns about Toyota's slower pace in transitioning to battery EVs compared to other automakers, pushing for a more aggressive EV strategy. 

   
• Government Pressure:
• In some regions, like Australia, there's pressure on governments to introduce fuel efficiency standards that incentivize the production and sale of low-emission vehicles, including EVs. 

   
• Solid-State Battery Promise:

  Toyota has made significant announcements about its progress in solid-state battery technology, which could potentially revolutionize EV range and charging times but consistently failed to deliver on any of them.

   

   

  Anti-EV spend on disinformation and lobbying.

   

  Toyota has faced criticism for its lobbying efforts against electric vehicle (EV) regulations and its financial support for politicians who deny or downplay climate change. Specifically, Toyota has been called out for donating to a large number of climate change-denying members of Congress, and for spending heavily on lobbying to weaken fuel economy and emissions standards. 

   

  Here's a more detailed breakdown:

  • Funding Climate Deniers:

    A report by Public Citizen revealed that Toyota has significantly funded the campaigns of climate change-denying lawmakers. Over the last three electoral cycles, they were the leading auto industry financier of climate deniers, backing 207 campaigns. 

     
  • Lobbying Against EV Regulations:

    Toyota has also been criticized for its lobbying efforts aimed at weakening fuel economy and emissions standards. This includes lobbying against electric vehicle mandates and clean air laws. 

     
  • Multi-Pathway Approach:

    While criticized for its lobbying tactics, Toyota also emphasizes a "multi-pathway approach" to reducing emissions, which includes investing in hybrid, plug-in hybrid, and hydrogen fuel cell vehicles alongside battery electric vehicles. They have also announced plans to develop 15 EV models by 2027 and aim to produce 1 million EVs annually by that time, according to Nikkei. 

     
  • Shareholder Scrutiny:

    Some investors have raised concerns about Toyota's lobbying practices and their potential impact on the company's reputation and long-term value, according to The Driven. One shareholder resolution called for a comprehensive review of Toyota's climate-related lobbying

   

[Ralf001]

Am a tier 1 supplier to Ford, Toyota, Mitsubishi and Izuzu.. the past 3 months all of them increased their demand.

[Classic Ray]

I have a similar feeling about car dealerships as I have about casinos. They have grandiose buildings that look impressive but ultimately are paid for by customers.

 

Tesla have shown you can sell cars without dealerships. 
 

I was recently quoted around 20000 baht at the dealership to fix the a/c on my Toyota for a new compressor and many other parts, not evaporator. Local mechanics diagnosed leak in evaporator behind dashboard, replaced same day 6000 baht.

[Davejf2017]

It seems that some car dealers have closed near Pattaya (Nissan, Mitsubishi) taken over by so called EV dealers.There used to be many customers before the takeover but now totally empty.

[Andycoops]

Two secondhand dealers have bit the dust in recent months in my local town.

[hotchilli]

16 hours ago, snoop1130 said:

Thailand’s car market is currently navigating challenging terrain as economic and political headwinds threaten its stability. According to the Kasikorn Research Centre, more than 50 car dealerships may shut their doors this year, signalling a significant shift in the industry landscape.

Wait till BYD goes bust in China... 

[Scouse123]

1 hour ago, Andycoops said:

Two secondhand dealers have bit the dust in recent months in my local town.

 

Hardly the same, is it?

[GarryP]

15 hours ago, billd766 said:

The MG dealers here in Kamphaeng Phet closed its dealership down a couple of months ago.

Ford Kalasin closed a month or two ago too. 

[GarryP]

1 hour ago, hotchilli said:

Wait till BYD goes bust in China... 

Seem to be doing much better than Tesla. 

[ujayujay]

1 hour ago, hotchilli said:

Wait till BYD goes bust in China... 

...Dreamer....

[trainman34014]

New and Used Cars have always been too expensive in Thailand.   The Banks and Dealerships love to Fleece the underpaid Worker Population with huge Credit Bills they know full well many people will never be able to pay back.   All just a massive con trick; especially by the Banks who just want to steal everyones Land to increase the rich Shareholders Dividens.

[hotchilli]

48 minutes ago, ujayujay said:

...Dreamer....

You haven't been watching the Chinese news... not what the CCP figures tell you.

Chinese BYD dealerships are closing fast.

[GarryP]

57 minutes ago, trainman34014 said:

New and Used Cars have always been too expensive in Thailand.   The Banks and Dealerships love to Fleece the underpaid Worker Population with huge Credit Bills they know full well many people will never be able to pay back.   All just a massive con trick; especially by the Banks who just want to steal everyones Land to increase the rich Shareholders Dividens.

I think you'll find that the excise tax on new cars in Thailand starts at 30%. A bit lower for most pickups but still 20%. That certainly knocks the price up. If you want to buy an imported car then you will pay a hell of a lot more tax, i.e. 80% or more depending on the model. So it is the tax knocking up the price of new cars.

 

Having said that, I agree that the price of second hand cars in Thailand is insanely high.  

[Ralf001]

1 hour ago, trainman34014 said:

New and Used Cars have always been too expensive in Thailand.   The Banks and Dealerships love to Fleece the underpaid Worker Population with huge Credit Bills they know full well many people will never be able to pay back.   All just a massive con trick; especially by the Banks who just want to steal everyones Land to increase the rich Shareholders Dividens.

 

Thai's buy a car on the never never... make a few payments then default, car repossed.

 

Change names and get another car on the never never... make a few payments then default, car repossed.....rinse and repeat.

 

how does the bank get their land ?

[CallumWK]

1 hour ago, hotchilli said:

You haven't been watching the Chinese news... not what the CCP figures tell you.

Chinese BYD dealerships are closing fast.

 

And despite receiving massive subsidies from the government, they still lose money on every car sold, and are more than 5 Billion USD in debt

[BritManToo]

19 minutes ago, GarryP said:

Having said that, I agree that the price of second hand cars in Thailand is insanely high.  

Neta V,

New 2023 430,000bht

S/H  2025 219,000bht

That's nearly 50% depreciation in 2 years.

 

[RAZZELL]

8 minutes ago, BritManToo said:

Neta V,

New 2023 430,000bht

S/H  2025 219,000bht

That's nearly 50% depreciation in 2 years.

 

 

Aren't Neta going bankrupt?

[TroubleandGrumpy]

Until they drop their prices - new and used - they are going to crash and burn even more - and the sooner they do the better.  The Thai People overall have reached their credit limits in Thailand - the banks are extremely reluctant to give out loans now because of the high default rates. Atypical Thailand business mentality - hand out easily until it goes to sheite, and then close it off - there is no sensible middle ground here.

 

The other thing is the massive taxes and huge profits being made here, that drive up the price of new cars and thus this flows on to the used car market.  How can the exact same car that is made in Thailand, cost 30% less in Australia - Toyota Corolla Cross.  New car prices are a massive rip-off in Thailand - we Expats know it - but the locals have no idea - and the wealthy that buy imported brands like Mercedes do not care. The whole car industry in Thailand is a scam - a Government protected scam. The Thainese owners of the big brands have driven out or keep out their main competitors.  What was originally setup to give jobs to locals has been corrupted - like everything else. 

 

The car to buy in Thailand now is a used car - the prices are dropping.  A used 6-10 year old car that is in a good condition is a bargain right now. I have been watching prices for many years - used car prices are dropping - new car prices are not dropping at all.  The dealers are sacking staff, and those employed in new dealerships are like those at Global House and Home Pro etc etc - they have nothing to do so they play with their phones all day. 

[BritManToo]

22 minutes ago, RAZZELL said:

Aren't Neta going bankrupt?

Aren't MG and BYD and Nissan going bankrupt?

From the op, wouldn't be surprised if half the car manufacturers were going bankrupt.

[GarryP]

50 minutes ago, BritManToo said:

Neta V,

New 2023 430,000bht

S/H  2025 219,000bht

That's nearly 50% depreciation in 2 years.

 

Yeah I forgot the EV market. The second hand price tanks, but that is not the case with ICE cars. 

[LosLobo]

6 hours ago, JBChiangRai said:

Here's a breakdown of some key areas where Toyota has been accused of breaking promises: 

1. Handling of Safety Recalls and Unintended Acceleration Issues: 

• Initial Denial and Delay:

  Toyota initially downplayed or denied reports of unintended acceleration in some of its vehicles, which led to accidents, injuries, and even fatalities. 

   
• Hiding Information:

  ABC News reports that Toyota was forced to "admit" it had "misled U.S. consumers by concealing and making deceptive statements about two safety related issues affecting its vehicles". 

   
• Massive Recalls:

  The issue led to the recall of millions of vehicles globally, causing financial losses and damaging the company's reputation. 

   
• Impact on Customer Trust:

  Change Management Insight notesthat Toyota's initial denial significantly impacted customer trust, with many questioning the brand's commitment to safety. 

   

2. Alleged Broken Promises to Minority Communities: 

• Advertising Disparities: The Citizen Newspaper Group reportsthat Toyota was accused of not fulfilling promises to advertise in African American newspapers after spending millions in mainstream publications following a safety recall. 
   

3. Political Donations and Alignment with Election Deniers: 

• Supporting Election Objectors:Common Cause reports that Toyota's political action committee (PAC) contributed to the campaigns of individuals who objected to the 2020 election results, despite the company previously stating it would not support such candidates. 
   

In summary, Toyota has faced criticism for breaking promises related to safety issues, advertising practices, and political donations. These instances have raised concerns about the company's integrity and commitment to its stated values. 
 

Then there’s its activity regarding EV’s…

• Delayed EV Launches:

  Toyota has postponed the launch of some of its planned EV models, including a new electric SUV that was initially slated for 2027 but is now expected in 2028. 

   
• Focus on Hybrids:

  Toyota's chairman, Akio Toyoda, has been a vocal opponent of EVs and stated they would never surpass a 30% market share, suggesting a continued focus on hybrid technology. 

   
• Alternative Fuel Strategies:

  Toyota has also expressed interest in synthetic fuels and hydrogen as potential alternative fuel sources, further demonstrating a diversified approach beyond fully electric vehicles. 

   
• bZ4X Issues:

  The bZ4X, Toyota's first mass-produced EV, faced a recall due to a potential wheel detachment issue, which led to a sales suspension and further raised questions about the company's EV readiness. 

   
• Commercial Failure of Mirai:

  Toyota has acknowledged the commercial failure of the Mirai, its hydrogen fuel cell vehicle, which has further fueled criticism regarding the company's commitment to alternative fuel technologies. 

   
• Investor Concerns:

  Some investors and environmental groups have voiced concerns about Toyota's slower pace in transitioning to battery EVs compared to other automakers, pushing for a more aggressive EV strategy. 

   
• Government Pressure:
• In some regions, like Australia, there's pressure on governments to introduce fuel efficiency standards that incentivize the production and sale of low-emission vehicles, including EVs. 

   
• Solid-State Battery Promise:

  Toyota has made significant announcements about its progress in solid-state battery technology, which could potentially revolutionize EV range and charging times but consistently failed to deliver on any of them.

   

   

  Anti-EV spend on disinformation and lobbying.

   

  Toyota has faced criticism for its lobbying efforts against electric vehicle (EV) regulations and its financial support for politicians who deny or downplay climate change. Specifically, Toyota has been called out for donating to a large number of climate change-denying members of Congress, and for spending heavily on lobbying to weaken fuel economy and emissions standards. 

   

  Here's a more detailed breakdown:

  • Funding Climate Deniers:

    A report by Public Citizen revealed that Toyota has significantly funded the campaigns of climate change-denying lawmakers. Over the last three electoral cycles, they were the leading auto industry financier of climate deniers, backing 207 campaigns. 

     
  • Lobbying Against EV Regulations:

    Toyota has also been criticized for its lobbying efforts aimed at weakening fuel economy and emissions standards. This includes lobbying against electric vehicle mandates and clean air laws. 

     
  • Multi-Pathway Approach:

    While criticized for its lobbying tactics, Toyota also emphasizes a "multi-pathway approach" to reducing emissions, which includes investing in hybrid, plug-in hybrid, and hydrogen fuel cell vehicles alongside battery electric vehicles. They have also announced plans to develop 15 EV models by 2027 and aim to produce 1 million EVs annually by that time, according to Nikkei. 

     
  • Shareholder Scrutiny:

    Some investors have raised concerns about Toyota's lobbying practices and their potential impact on the company's reputation and long-term value, according to The Driven. One shareholder resolution called for a comprehensive review of Toyota's climate-related lobbying

   

Interesting — a citation and logic-free, off-topic rant from a biased EV partisan upset that Toyota hybrids outsell EVs in their class. Built on fallacies and spin: guilt by association, red herring, straw man, post hoc ergo propter hoc, purity test, cherry-picking, and loaded language — all to paint Toyota as outdated and dishonest without a shred of relevant evidence.

The oversize text maybe makes the rant louder — but not more credible.

Meanwhile, in the real Thai market......
In May 2025, the Toyota Yaris Cross hybrid alone captured 42.3% of B‑SUV sales — that’s 2,886 units out of 6,808 — outselling all BEVs in its class combined.

https://autolifethailand.tv/sales-report-b-suv-crossover-may-2025/

[newnative]

    The opposite seems to be happening in Pattaya.  On the way to the land office yesterday we noticed a new Honda dealership--not sure why they need yet another one as there are already two in Pattaya that I know of.  Ditto for Toyota.  Pattaya also looks to be getting almost every Chinese brand, as well as both Korean brands.  

[JBChiangRai]

1 hour ago, BritManToo said:

Neta V,

New 2023 430,000bht

S/H  2025 219,000bht

That's nearly 50% depreciation in 2 years.

 

Sounds about right for most cars.

 

1 hour ago, LosLobo said:

Interesting — a citation and logic-free, off-topic rant from a biased EV partisan upset that Toyota hybrids outsell EVs in their class. Built on fallacies and spin: guilt by association, red herring, straw man, post hoc ergo propter hoc, purity test, cherry-picking, and loaded language — all to paint Toyota as outdated and dishonest without a shred of relevant evidence.

The oversize text maybe makes the rant louder — but not more credible.

Meanwhile, in the real Thai market......
In May 2025, the Toyota Yaris Cross hybrid alone captured 42.3% of B‑SUV sales — that’s 2,886 units out of 6,808 — outselling all BEVs in its class combined.

https://autolifethailand.tv/sales-report-b-suv-crossover-may-2025/

 

Actually it was from AI, I could have posted the references, but you can look them up yourself.

 

Needless to say, it was all factual.

[CallumWK]

10 minutes ago, JBChiangRai said:

Sounds about right for most cars.

 

Sounds about right for most EV, you mean? Sure isn't true for most ICE cars

[LosLobo]

19 minutes ago, JBChiangRai said:

Actually it was from AI, I could have posted the references, but you can look them up yourself.

 

Needless to say, it was all factual.

Brandolini told me not to waste my time responding to BS — and he’s rarely wrong.

[Monolith]

3 hours ago, hotchilli said:

You haven't been watching the Chinese news... not what the CCP figures tell you.

Chinese BYD dealerships are closing fast.

I understand it was only one third party dealer network for BYD that shutdown in Shandong.