The Federation of Thai Industries (FTI) is reviewing plans to revise downward Thailand’s motorcycle production target for 2025, despite a modest increase in first-quarter output, citing domestic economic stagnation, a drop in Chinese tourist arrivals, and global trade uncertainties, including those linked to U.S. tariffs.
Surapong Paisitpatanapong, vice-chairman of the FTI and spokesperson for its Automotive Industry Club, described the situation as “another difficult year for the automotive industry and related sectors.” He noted that the club would likely adjust its initial forecast—which projected a 0.1% year-on-year increase to 2.1 million units—by mid-year.
In Q1 2025, motorcycle production rose 0.71% YOY to 664,485 units. This included a 0.36% decrease in completely built-up (CBU) units and a 5.26% rise in completely knocked-down (CKD) units. March alone saw a notable 6.54% YOY increase, with 233,782 units produced.
However, industry confidence is being shaken by a slowdown in the tourism sector, particularly from China, a major driver of motorcycle demand. According to the Association of Thai Travel Agents (ATTA), Chinese tourist arrivals declined significantly due to multiple factors—including the kidnapping of actor Wang Xing, the Myanmar-Thailand earthquake, and a drop in chartered flights by over 20%.
A China Trading Desk survey also revealed that Thailand dropped to 7th place in popularity among Chinese travelers, down from 4th in late 2024. ATTA President Thanapol Cheewarattanaporn likened the Chinese tourism market to a “comatose patient,” in contrast to relatively stable trends from other markets.
Despite a 1.7% increase in domestic motorcycle sales (455,244 units), exports fell by 4.5% YOY to 242,096 units. Key export destinations include the U.S., U.K., Belgium, and Japan.
The FTI emphasized the connection between tourism activity and motorcycle demand, as many tourists rent motorcycles during their stay. The ongoing slump in Chinese arrivals poses a direct challenge to sustaining production momentum for the rest of the year.
photo Bangkok post
