10-07-2025
Motorcycle production and sales set to slow in 2nd half
More motorcycle production and sales in Thailand during the first five months of 2025 do not guarantee bright business prospects as the industry looks likely to slow in the second half, says the Federation of Thai Industries (FTI).
The downturn is attributed to weak consumer purchasing power and sluggish economies among Thailand's trading partners, said Surapong Paisitpatanapong, vice-president of the FTI and the spokesman for its Automotive Industry Club.
From January to May, Thailand's total motorcycle manufacturing rose by 5% to more than 1 million units, comprising 865,858 completely built-up units, a year-on-year increase of 3%, and 198,523 completely knocked-down units, a gain of 13%.
Sales in the domestic market also increased during the period, with 751,848 motorcycles sold, a year-on-year increase of 1.6%.
Though the sales figures beat car sales, which fell by nearly 3% to 252,615 units, motorcycle manufacturers cannot be complacent given the external and domestic economic challenges, said Mr Surapong.
"Banks and car financing companies continue to tighten their lending criteria for auto loans amid the high level of household debt," he said.
According to the Bank of Thailand report issued on June 30, total household debt tallied 16.3 trillion baht in the first quarter of 2025, equivalent to 87.4% of GDP, down from 16.4 trillion baht or 88.4% of GDP in the previous quarter.
Though household debt fell, its amount remained high. The decrease reflected stricter lending standards from financial institutions and weaker loan demand from borrowers, said the central bank.
The sluggish domestic economy is not the only factor that worries commercial banks and car financing companies, as they are also concerned about the current political situation.
"Business confidence and public trust in the government are also going down, driven by political turbulence," said Mr Surapong.
The leaked audio clip featuring Prime Minister Paetongtarn Shinawatra and former Cambodian prime minister Hun Sen discussing a territorial dispute has dealt a blow to the stability of the government.
