Thailand has rolled out a 50 billion baht ($147.8 million) loan guarantee program aimed at reviving pickup truck sales and supporting its ailing automotive sector. Pickup trucks account for roughly one-third of domestic vehicle sales, but financing difficulties have severely hampered purchases.
Deputy Finance Minister Paopoom Rojanasakul announced the initiative ahead of the Bangkok International Motor Show, stating it is designed to reduce lending risks for financial institutions and encourage new auto loans. The government expects the program to drive at least 6,250 vehicle sales.
Thailand’s car industry has been hit hard by tightening credit conditions, fueled by soaring household debt, which reached 89% of GDP in 2023. Vehicle production has fallen for 18 straight months, with a 24% year-on-year decline in January to just over 107,000 units.
In parallel with this policy, Thailand is also focusing on electric vehicle investment. Chinese automakers BYD and Great Wall Motors have committed more than $3 billion to the Thai market. The government is offering tax breaks for plug-in hybrids, while Japanese brands are promoting scrappage and trade-in incentives to stimulate demand.