Thailand’s automotive market faces critical challenges amidst shifting regional landscape
Thailand's Automotive Market Decline: Thailand's automotive sector is experiencing significant challenges, with a 26% YoY decline in Light Vehicle sales in 2024 and a further expected contraction in 2025. The government has introduced measures to support Pickup Truck financing, but high household debt and economic uncertainties may limit their effectiveness.
Regional Competition and Production Outlook: Thailand has fallen to the third largest automotive market in ASEAN, trailing behind Indonesia and Malaysia, while Vietnam's market is growing rapidly. Despite domestic sales struggles, Thailand is projected to remain the largest automotive production hub in the region, although production levels are declining compared to pre-pandemic figures.
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