Picture courtesy of Bangkok Post

 

The motorcycle industry in Thailand experienced notable growth in the first five months of 2025, yet experts forecast potential slowdown as challenges mount. According to the Federation of Thai Industries (FTI), the rise in motorcycle production and sales may not translate into sustained business prospects due to weakening consumer purchasing power and sluggish global economies.

 

From January to May, the total motorcycle output in Thailand increased by 5%, surpassing 1 million units. This included 865,858 completely built-up units, up 3% year-on-year, and 198,523 completely knocked-down units, a significant 13% rise. Domestic sales also saw a modest increase, with 751,848 motorcycles sold—a 1.6% uptick from the previous year.

 

Despite these encouraging figures, surpassing car sales which fell by nearly 3% to 252,615 units, industry leaders remain cautious. As Surapong Paisitpatanapong, vice-president of the FTI’s Automotive Industry Club, highlighted, ongoing external and domestic economic challenges pose risks for manufacturers.

 

A key issue lies in the tightening of lending criteria by banks and car financing companies amid elevated household debt levels. As of the first quarter of 2025, Thailand's household debt stood at approximately 16.3 trillion baht (around 432 billion Thai Baht), accounting for 87.4% of GDP—a slight decrease from the previous quarter yet still concerning.

 

The Bank of Thailand attributes the decline in household debt to stricter lending standards and reduced loan demand, reflecting weaker economic conditions. Additionally, political instability adds to the industry’s woes.

 

Political tensions escalated following the leak of an audio clip involving Prime Minister Paetongtarn Shinawatra and Cambodia’s former Prime Minister Hun Sen discussing a territorial dispute, triggering a surge in political anxiety. This development has shaken business confidence, with financial institutions wary of potential repercussions.

 

Furthermore, Prime Minister Paetongtarn faces a Constitutional Court petition from a group of senators demanding her removal, exacerbating the government's instability.

 

As the industry navigates these complex dynamics, stakeholders remain vigilant, recognising that balancing domestic and international hurdles is crucial for sustaining growth in Thailand’s vital motorcycle sector.

 

  Adapted by ASEAN Now from Bangkok Post 2025-07-11

 

 

They could always reduce prices to stimulate sales. Waited for that during COVID when sales dropped to zero. Never happened. No discounts, nothing!