Domestic car sales in the ultra-luxury vehicle segment are expected to fall this year due to a slowdown in the automotive industry and the Thai economy, causing people to delay their purchases, says Inchcape (Thailand), the distributor of British car brands Land Rover and Jaguar.
US President Donald Trump's steep tariffs are also causing concern to Land Rover and Jaguar, requiring the brands to adjust their business direction.
"Car sales in the high-end market are affected by the sluggish economy which will be worsened by Trump's policy. This causes prospective buyers not to spend money," said Charnchai Mahantakhun, managing director of Inchcape (Thailand).
From January to March this year, cars sales in the ultra-luxury vehicle segment in Thailand fell by 16% year-on-year, he said.
Mr Charnchai believes the Thai car market will continue to remain sluggish this year, causing car companies to invest in marketing campaigns in order to attract prospective buyers.
Last year Inchcape (Thailand) allocated 10 million baht to renovate its sole showroom in Bangkok, but this year it has no plans to spend money on any renovations or business expansion plans.
"We need to carefully manage our investment budget this year because it is difficult to drive up business at a time of slowdown in the car industry and the national economy," said Mr Charnchai.
Inchcape (Thailand) is in talks with Land Rover and Jaguar, a wholly-owned subsidiary of Tata Motors, to request a greater sales quota in Thailand next year.
The country is given a limited number of Land Rovers each year for sale domestically.
"Tata Motors is considering increasing sales volume in Asia-Pacific, including Thailand, due to the impact of Trump's auto tariff," said Mr Charnchai.
The president's decision to impose a 25% tariff on foreign-made automobiles exported to the US took effect on April 2, while auto parts exporters can expect to face new duties no later than May 3, according to media reports.
China, Japan and South Korea are the main export markets of Land Rover and Jaguar.
Other countries are also targets, with New Zealand having the greatest market growth potential, followed by the Philippines, Singapore and Thailand.
Inchcape (Thailand) recently launched the Land Rover Defender OCTA, which is priced at 22 million baht.