Automakers are responding to sluggish domestic car sales by cutting costs and launching new promotional campaigns, which they hope will increase bookings at the Bangkok International Motor Show opening on March 26.
Many car brands are relying on these campaigns as they search for ways to stimulate sales, which have been declining throughout the year, according to Wallop Chalermvongsavej, managing director of Hyundai Mobility Thailand, a subsidiary of South Korea’s Hyundai Motor Group.
Some companies are appealing to potential buyers by offering installment plans over 7-8 years with no interest. They are able to do this by reducing marketing expenses, including costs for public relations, and reallocating those funds to sales promotion efforts.
“I have never seen car manufacturers launch such extensive campaigns before,” said Mr. Wallop, who has been in the automotive industry for 25 years. He emphasized that companies must take responsibility for driving sales, as the government has yet to implement sufficient measures to assist them.
In the first two months of this year, car sales in Thailand fell by approximately 10% compared to the previous year, prompting a downward revision of the 2025 vehicle sales forecast. Mr. Wallop estimated total car sales for this year would be around 530,000 units, down from the previous estimate of 560,000 units, with 70,000 to 80,000 of those units expected to be battery electric vehicles.
The Federation of Thai Industries reported that total car sales in 2024 reached 572,675, representing a year-on-year decline of 26.1% from 2023. Sales of pure pickups dropped by 38.3%, totaling 163,347 units.
“Difficulty in obtaining auto loans is a significant contributor to the decrease in car sales,” noted Mr. Wallop. Prospective buyers began facing loan rejections in 2023 as banks and car financing companies expressed concern over non-performing loans in the automotive sector, coupled with high household debt levels.
“A price war among certain car brands has also led people to postpone their purchases,” he added.
Car manufacturers are encouraged to learn from the adverse effects of last year’s price war and consider strategies that cater to their customers’ needs, according to Vudhigorn Suriyachantananont, vice-president for marketing at Great Wall Motor. “We prefer to avoid the price war. Competing against ourselves and prioritizing customer care is more beneficial,” he said.
Car companies are urging the government to expedite its review of a proposal from the Joint Standing Committee on Commerce, Industry and Banking to establish a 5-billion-baht fund aimed at boosting consumer loans for pickups.
“We believe this initiative could enhance sales in the pickup sector, but addressing the overall market slowdown will be challenging,” said Takashi Hata, president of Tri Petch Isuzu Sales.
The 12-day Bangkok International Motor Show, featuring 41 car companies, will run until April 6.
