Thai Honda Manufacturing Co, a local motorcycle manufacturer and distributor, is concerned rising household debt and the Bank of Thailand's plan to regulate operators of auto hire-purchase and leasing businesses will affect the country's motorcycle sales this year.
The central bank's new regulations are aimed at preventing the rate of household debt from rising and controlling the non-finance sector, which could affect the volume of motorcycle sales in the country, said Wiwat Lertpati, the company's chief sales and marketing officer.
"This may affect the sales volume in the domestic market. The company expects the country's sales volume to drop by 5-10% this year," he said.
Thai Honda is monitoring the household debt and the government's measures to control the non-finance sector.
The company is optimistic as the inflation rate continues to decelerate, which increases people's purchasing power, said Mr Wiwat.
The new government's stimulus measures are also expected to boost economic growth and purchasing power in the country, he said.
The enforcement of a Bank of Thailand draft royal decree on auto hire-purchase businesses is expected to come into effect between the end of this year and the beginning of next year.
The central bank plans to oversee the sector in two core areas: market conduct and macroprudential regulation.
Thai Honda expects the country's volume of motorcycle sales this year to reach 1.85 million units, an increase of 3% year-on-year.
For the period covering January to July, the sales volume was 1.15 million units.
The company expects its motorcycle sales this year to tally 1.2-1.4 million units, an increase of 3% year-on-year.
"From January to July, Thai Honda's motorcycle sales tallied 940,000 units and the company is confident the last quarter will boost the sales volume to reach our goal," said Mr Wiwat.
Thai Honda president Shigeto Kimura said the company is optimistic the local motorcycle industry will continue to increase as the tourism industry raises demand growth, while semiconductor shortages have eased, helping motorcycle production capacity and sales volumes.
Thai Honda launched a new motorcycle model locally called New Honda Giorno Plus.
"The company also plans to export the model to Myanmar, Laos and Cambodia, as Thailand is our production base," he said.
Thai Honda expects the new model to tally sales of around 5,000 units a month or 50,000-60,000 units a year. Prices start from 61,900 baht.