Thai automobile sales executives are urging the government to quickly devise new measures that could nudge banks to grant more auto loans to prospective buyers, seeking to lift both the new and used car markets.
The Thai automotive market remains critically weak as banks and car financing companies have maintained their strict lending criteria to avoid non-performing loans as household debt remains elevated.
Both new and used vehicle markets will continue to slow this year under these circumstances, according to the industry.
“We have already discussed the issue with financial institutions, asking them to grant more loans to buyers in the two markets, but have so far seen no sign of improving sales,” said Asadavut Asasappakij, vice-chairman of King of Auto Products Co, the organiser of the 2025 Fast Auto Show Thailand.
Car sales in Thailand last year reached the lowest level in 14 years at 572,675 units, a year-on-year decrease of 26%.
Without help from the government, domestic car sales are likely to keep slowing down in the second half of this year, said Mr Asadavut.
He expects total car sales in the country to be lower than 520,000 in 2025, attributed to buyers’ difficulties obtaining auto loans, weak consumer purchasing power and the sluggish economy.
The Fast Auto Show Thailand, which features both new and pre-owned cars, is believed to help boost the automotive industry in mid-2025.
The event is scheduled to be held from July 2-6 at Bitec Bang Na in Bangkok.
“We have not set targets for car sales or visitors during the five-day event. It is difficult to make a forecast,” said Pattanadesh Asasappakij, chairman of the committee organising the show.
Experts believe the used car market will experience lower demand this year because there is not much difference between prices of new and second-hand cars.
Prices of used internal combustion engine (ICE) cars have already fallen by 50% as electric vehicles (EVs) are becoming more popular, said Pinyo Tanawatcharaporn, the owner of the second-hand car company Yo Ratchada and former president of the Association of Used Car Dealers.
The prices of certain EV brands continue to decrease, causing people not to buy used ICE cars, he said.