Thailand's motorcycle production will remain sluggish this year, projected to tally 2.1 million units as buyers' difficulty in accessing loans continues to haunt the domestic market, says the Federation of Thai Industries (FTI).
Manufacturing dipped by 1.8% year-on-year in 2024 to 2.42 million units, as production of completely built-up motorcycles fell by 11% year-on-year to 1.88 million units, though the completely knocked-down category rose by 53.1% to 539,159 units.
In December last year, motorcycle production decreased by 6.5% year-on-year to 202,614 units.
The production outlook for 2025 aligns with GDP projections, though banks and auto financing companies' strict criteria in granting loans amid high levels of household debt still govern how the motorcycle market will perform this year.
"With higher GDP growth expected by the government, we hope to reach our motorcycle production target," said Surapong Paisitpatanapong, vice-chairman of the FTI and spokesman for its Automotive Industry Club.
Regarding the target of 2.1 million, 1.7 million motorcycles are expected for the domestic market, with 400,000 units for export.
The Fiscal Policy Office predicts economic expansion of up to 3.5% this year, rising from an estimate of 2.5% growth last year.
"State stimulus measures and growing tourism should lift consumer purchasing power and their confidence in the economy," said Mr Surapong.
Higher purchasing power is important to stimulate demand for motorcycles, which was subdued last year due to slow economic growth and elevated household debt, he said.
In December, domestic motorcycle sales fell by 5.7% year-on-year to 124,793 units.
For 2024, the sales volume fell by 9.35% year-on-year to 1.68 million units, with the internal combustion engine category dipping 9.3% and battery-powered motorcycles decreasing 52.3%.
Last year a total of 200 electric motorcycles were sold, according to the club.
Mr Surapong said motorcycle exports were healthy last year, rising 14.1% year-on-year to 938,762 units, though the value decreased by 6.7% to 63.9 billion baht.