Thailand is exploring a potential measure to stimulate its slumping pickup truck market by offering tax discounts to owners who trade in vehicles aged between 20 and 25 years for newer models, Finance Minister Pichai Chunhavajira announced on Monday. Discussions with relevant stakeholders have already commenced, although details of the proposal remain under wraps, according to Mr. Pichai. The initiative aims to revitalize the domestic pickup truck sales, which have continued to decline despite a slight uptick in overall car sales in April – the first rise in nearly two years. The struggling automotive sector has been impacted by tightening credit conditions amid soaring household debt. In February, earlier reports emerged that Thailand was in preliminary talks with major car manufacturers to introduce a trade-in and scrapping scheme to revive the industry, which is facing its most significant crisis in decades. As Southeast Asia’s largest automobile production hub and a key export base for global carmakers like Toyota, Honda, and China’s BYD, Thailand’s automotive sector plays a crucial role in the regional economy. Mr. Pichai also highlighted plans to introduce additional measures focused on debt relief and stabilizing local energy prices. The Minister expressed confidence that domestic energy prices would remain unaffected by Middle East tensions, provided they do not escalate further. Furthermore, he noted that there had been no unusual capital flows reported in Thailand.
