Ford Thailand is requesting the government step up efforts to help companies in the internal combustion engine (ICE) car segment, particularly motorcycle manufacturers, as they are not able to quickly adjust to the changes caused by the fast-growing electric vehicle (EV) market.
Measures, including tax cuts and subsidies, to promote the EV industry, have been implemented, but operators in the ICE sector have yet to see the government initiate projects to help them cope with disruptions in the automotive industry, said managing director Ratthakarn Jutasen.
"Entrepreneurs of ICE-related businesses are old friends of the government. They helped develop automotive supply chains for the country," he said.
"The government must do something to help them because the whole automotive industry is currently weak."
Ford wants the government to launch measures, especially ones that can deal with banks' stricter criteria in the granting of auto loans amid the high level of household debt. The difficulty in accessing loans is among the factors that have caused a significant drop in domestic car sales this year.
Global car manufacturers, together with the Thailand Leasing Association, earlier discussed the issue with the Bank of Thailand to try to find ways to solve the problem.
Car manufacturers want the central bank to relax its "responsible lending" campaign which was launched to combat the severe household debt problem.
Responsible lending is meant to enhance the quality of household debt and reduce the debt ratio over the long term.
The country's household debt-to-GDP ratio is high at 91%.
Ford Thailand expects domestic car sales for 2024 to stand at 640,000 units, down from its earlier projection of 820,000-830,000 units, mainly because of Thailand's slow economic growth.
Car sales in the country during the second half of this year should increase by 12-13%, thanks to the spending of the state budget, stimulus measures and the continual recovery of tourism.
"We believe the sales volume should reach 54,000 to 55,000 units, attaining the target," said Mr Ratthakarn.
During the first half, car sales under the Ford brand stood at 11,282 units, earning the company a market share of 8-9%. In terms of car sales, Ford achieved the third highest number during that period, he said.