Bangkok: The president of the Used Car Association anticipates a significant downturn in sales, with a forecasted decrease of 10% by 2025.
According to Thai News Agency, the association’s president, Mr. Wisut Hemphanpairaw, highlighted the ongoing challenges faced by the used car industry, including a continuous decline in sales and loan disbursements over the past three years. This trend is attributed to economic slowdowns, the impact of Trump’s tariffs, and the increasing presence of electric vehicles (EVs).
Mr. Wisut addressed these issues at the press conference ‘In-depth look at the used car business, uniting forces to overcome the crisis.’ He noted that the used car market is undergoing a significant transformation driven by economic factors, product pricing, and shifts in consumer behavior. The number of cars entering the used market was 300,000 in 2024, but only 92,293 cars entered in the first five months of this year, suggesting a 28-30% decrease by year-end.
Loan disbursements for used cars have also seen a marked decline. In 2023, loans amounted to 122 billion baht, which fell to 92 billion baht in 2024-a 25% decrease. The prediction for 2025 is a further 10% decline, with loans totaling 83 billion baht in the first five months of this year.
The downward trend in sales is evident, with 406,000 units sold in 2023, dropping to 316,000 units in 2024. The projection for 2025 is 285,000 used cars, marking a 10% reduction. Mr. Wisut also pointed out that new car sales have been declining. From 849,388 units in 2022, sales dropped to 572,675 units in 2024, with an expected 520,000 new cars sold this year.
The challenges faced by the industry are compounded by Donald Trump’s tariff policy, which has yet to see a resolution between the U.S. and Thailand. This policy has already been addressed by competitors like Vietnam and Indonesia. The introduction of EVs poses additional hurdles for the used car market, notably in valuation, maintenance, and consumer confidence.
Thailand’s position as a regional automotive hub is under threat, with the country losing its second-place standing in ASEAN to Malaysia last year. Indonesia holds the top spot, and there is a possibility that the Philippines may overtake Thailand this year. Mr. Wisut emphasized the need for strategic adaptation within the industry to maintain Thailand’s automotive industry competitiveness.
The Used Car Association has initiated policies to establish quality standards and inspect and grade cars before sale. These measures, alongside the development of training programs, aim to enhance the industry’s quality and confidence. Collaborative efforts from both government and the private sector are deemed essential to revitalize the used car industry and ensure the Thai automotive sector remains competitive.