New vehicle sales in Thailand fell by 45.5% to 68,508 units in January, from last year’s peak 125,817 units, according to the Federation of Thai Industries.
Year earlier sales were artificially boosted by first time buyer incentives but market conditions have since toughened significantly. Economic growth has fallen sharply, to 0.6% year on year in the fourth quarter of 2013 from 6.5% in the whole of 2012.
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Tighter lending introduced by banks in recent months in the form of higher minimum down payment requirements highlight the growing risk of loan defaults from buyers of cars under the first time buyer scheme.
Political unrest, which is showing no sign of coming to an end, is affecting normal government activity as well as undermining business and consumer confidence.
Vehicle production fell 31.1% in January to 162,652 units while exports fell 6.9% to 81,025 units.
