The Federation of Thai Industries (FTI) is urging the Thai government to introduce scrappage incentives to help the domestic vehicle market recover quickly from the COVID-19 pandemic, according to local reports.

The latest wholesale data released by the federation shows vehicle sales in the country fell 24% to 200,064 units in the first quarter of 2020 from 263,549 units in the same period of last year with sales in March plunging by 42%.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Preliminary data suggested sales in April declined by over 60% to 33,000 units.

Vehicle production fell by over 19% to 453,682 units in the first quarter while exports were down by over 16% at 253,904 units.

Toyota, Honda, Mitsubishi, Ford and Mazda have shut down local production in March and April due to local lockdown regulations and falling global demand.

A number of manufacturers told the FTI they are already planning to lay off full time workers while temporary contracts are already not being extended and in some cases voluntary resignation plans have been offered to workers.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The federation said a rapid recovery in the domestic vehicle market would help safeguard thousands of auto sector jobs in the country and help stabilise the overall economy.

Surapong Paisitpatanapong, spokesman for the FTI automotive club, told reporters his organisation was urging the government to make available incentives for owners to trade in vehicles older than 20 years for new eco friendly models.

He estimated there were around 2m such vehicles in circulation at present.

The programme would depend on vehicle manufacturers also agreeing to offer incentives and should be allowed to specify which models would qualify.

The federation is also calling on the government to extend the August income tax deadline by one year to allow local automakers to maintain adequate levels of working capital.