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Thai automotive industry under threat amid political uncertainty and loan concerns
Picture courtesy of vecstock, Freepik The Thai automotive industry is under threat due to a potential delay in forming a new government, following a marked decline in domestic car sales in the first half of this year.
As noted by Toyota Motor Thailand, the ongoing political uncertainty is likely to postpone car purchases from potential customers both domestically and in the business sector. Individuals and companies alike are keen to first understand the economic policies of the prospective coalition government before committing to major purchases.
This issue compounds the already depressed sale of cars, a result of financial institutions implementing stricter criteria for granting loans to car buyers due to concerns surrounding rising interest rates and high household debt, which currently sits at 90% of GDP.
This, coupled with the unpredictable state of Thailand‘s economy, is…
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