Carmakers Demand Government Stimulus as Motor Expo Begins
Thailand’s leading automotive manufacturers are calling for urgent government support as the Thailand International Motor Expo opens, warning that current measures are insufficient to protect the industry from multiple challenges including severe flooding impacts.
Key Demands from Automakers
- Extension of 5-billion-baht loan guarantee program for pickup buyers
- Stimulus measures to boost domestic demand
- Review of new tax policies affecting the industry
Speaking ahead of the 12-day event, executives from Toyota and Isuzu emphasized the need for stronger government intervention to support the struggling automotive sector.
Industry Employment Concerns
Noriaki Yamashita, president of Toyota Motor Thailand, highlighted the sector’s economic importance: “This industry employs more than 900,000 workers. If the automotive sector improves, it will support Thai workers.”
Pickup Segment Challenges
Toyota reported concerning trends in the pickup market, with sales declining by over 14% year-on-year between January and October. Takashi Hata, president of Tri Petch Isuzu Sales, confirmed pickup sales have dropped for 2-3 consecutive years.
Hata urged the government to extend the loan guarantee program beyond its December 31 expiry: “If the programme is extended and conditions are reviewed to suit the market, it will help the pickup segment.”
Tax Policy Changes
The cabinet has approved new excise tax rates for plug-in hybrid vehicles effective January 2026. Vehicles capable of 80 kilometers or more per charge will face 5% tax, while those below that threshold will be taxed 10%.
Voravud Bhirombhakdi of Cavallino Motors, Ferrari’s authorized importer, requested a 2-3 year delay or gradual implementation to ease manufacturer burdens.
Flood Impact and Recovery
Recent floods in Songkhla have disrupted dealership operations and reduced consumer purchasing power. Isuzu plans to implement support measures for affected dealers and customers, while expecting rising farm incomes to partially boost rural pickup demand.
Production Stability
Despite challenges, the Office of Industrial Economics reported that October car production helped stabilize the Manufacturing Production Index at 94.57 points, down only 0.08% year-on-year.
The Thailand International Motor Expo runs from November 29 to December 10 at Impact Challenger Hall, featuring new models and automotive technologies.
