Bangkok: The automotive sector is eagerly anticipating the implementation of the “Half-Half” scheme, which aims to rejuvenate pickup truck sales and bolster the industry amid an economic slowdown. This scheme is also anticipated to support continued growth in electric vehicle sales.
According to Thai News Agency, Mr. Surapong Paisitpatanapong, advisor to the president and spokesman for the Automotive Industry Club of the Federation of Thai Industries (FTI), highlighted the challenges faced by the industry due to declining purchasing power and the reluctance of leasing banks to approve loans over concerns about non-performing loans. Automakers are urging the government to proceed with the “Half-Half” scheme, which is expected to be finalized soon. The scheme is designed to boost sales for small retailers and enhance their ability to make car payments. It includes incentives for purchasing pickup trucks, such as the “Brother Pickup with Finance Guarantee” and the “Old Car for New Car” scheme, along with the creation of a compensation fund for non-performing loans to assist farmers and small retailers.
The compensation fund is intended to mitigate the impact of bad debts on banks. For instance, if a vehicle priced at 600,000 baht is sold, the government stands to gain 1.8 billion baht in excise taxes and 4.2 billion baht in VAT, totaling 6 billion baht in tax revenue. Increased car sales also contribute to job creation, with 90% of components sourced domestically. The new Bank of Thailand Governor, Vitai Ratanakorn, has indicated that interest rates are likely to fall, which would reduce borrowing costs and installment payments. The industry is optimistic that the government and the Bank of Thailand will facilitate lower borrowing costs.
Electric vehicle (EV) manufacturers are expediting the establishment of domestic factories as part of the EV 3.0-EV 3.5 projects, under contracts with the Excise Department. These projects require production to offset imports by 1-1.5 times from 2013-2023. To date, 14,000 electric passenger cars have been produced, with a target of 100,000 by 2025. Should manufacturers fail to meet these targets, the Excise Department may impose additional fees and revert the excise tax from 2% back to the original 8%.
Mr. Surapong noted that electric passenger car sales have averaged 10,000 units per month due to their affordability and accessibility. This has resulted in a significant increase in EV sales, with manufacturers recording 72,274 units sold in the first eight months, marking a 51.69% rise. This growth is attributed to the lower prices of lithium and sodium batteries, contrasting with a 16.96% decline in gasoline-powered vehicle sales.
From January to August 2025, 601,457 vehicles were produced, reflecting a 4.49% decrease compared to the same period in 2024. Of these, 134,228 vehicles were produced for export, accounting for 38.77% of passenger car production, which is a 33.35% decrease from the previous year. Meanwhile, production for domestic sales reached 324,628 vehicles, representing a 1.69% increase from the prior year.