Thailand’s Automobile Sales by Segment in 2023

Thailand’s automobile sales decreased by 5.3% from the previous year to 798,540 units in 2023, falling below 800,000 units for the first time in two years. The reasons behind the drop were the economic downturn and stricter loan screening for sales financing. In Thailand, one-ton pickup trucks, which receive preferential excise tax treatment, are the most popular choice of vehicle. Until 2022, one-ton pickup trucks accounted for more than 40% of the total vehicle market, with the remainder divided between passenger cars, and SUVs and MPVs. However, in 2023, one-ton pickups fell to 36.5%, well below 40%, while passenger cars and SUVs increased their share.

Passenger car sales rose by 0.3% from the previous year to 239,265 units in 2023, maintaining the same level as the previous year. The composition ratio of passenger cars in the total market inched up by 1.7 percentage points to 30%. Sales of SUVs surged by double digits compared to the previous year in all segments, small, midsize / large, and premium.

One-ton pickup trucks accounted for 40% of the total market until 2022, but this figure dropped in 2023; however, it is believed that drop is only temporary and will not significantly change the demand trend in the Thai automobile market. One-ton pickup trucks are often purchased using car loans. In 2023, the proportion of debt in household budgets increased, negatively impacting car loans under stricter credit regulations.However, due to differences in usage, it is difficult to imagine demand shifting from one-ton pickups to other segments. If the sales environment, including credit, improves, it is expected that SUVs will recover their 40% market share.