Key Takeaways
- Domestic car sales are projected to reach 600,000 units this year, surpassing 2024’s 572,000 vehicles.
- Electric vehicle (EV) sales exceeded petrol cars for the first time in September 2024.
- High household debt continues to challenge the auto loan market, keeping overall sales stagnant.
Thailand’s car market is set for growth in 2024, with domestic sales expected to hit 600,000 vehicles despite industry-wide sluggishness. The Federation of Thai Industries (FTI) attributes this forecast to the electric vehicle revolution, where EVs now dominate sales while petrol car sales decline.
EVs Overtake Traditional Cars
In a historic shift, battery electric vehicle (BEV) sales surged 99% year-on-year in September, capturing an 18.8% market share. This marked the first time EVs surpassed internal combustion engine (ICE) vehicles, which saw sales plummet by 22% to an 18.7% share.
Surapong Paisitpatanapong, FTI vice-president and Automotive Industry Club spokesman, explained: “BEV makers are attracting more customers with new technologies, attractive prices and good marketing campaigns.” He added, “The government is also promoting local BEV production through its EV incentive packages.”
Market Performance and Challenges
From January to September, total car sales grew modestly by 2% to 447,969 vehicles. However, the market faces headwinds from high household debt, making auto loans inaccessible for many potential buyers.
The FTI expects new government stimulus measures, particularly the “Khon La Khrueng Plus” co-payment scheme, to boost economic confidence and consumer purchasing power in the coming months.
Export and Production Trends
Car exports showed improvement in September with a 7.2% year-on-year increase to 86,056 units, driven by strong pickup and PPV sales. Several companies launched new PPV models for export this month, while EV exports in passenger and pickup segments also increased as ICE car exports declined.
However, overall exports for the first nine months dropped 10% to 689,031 units. Car production in September rose 4.7% to 128,104 units, supported by manufacturers participating in state EV incentive schemes who ramped up local BEV production to offset subsidized imports.
Total production from January to September reached 1,075,801 vehicles, representing a 4.6% decline compared to the same period last year.
