This is not good news for the many vendors and after market product suppliers in Thailand who rely on the former growing pickup truck market in the country.

The potential reduction in local pickup truck production has raised concerns regarding the future of Thailand’s automotive supply chain.

For decades, domestic parts suppliers have relied heavily on the production of internal combustion engine vehicles, particularly pickup trucks. However, the transition towards electric mobility has already created challenges for many suppliers.

The Automotive Industry Club highlighted the prolonged downturn in pickup truck sales, driven by tighter bank lending policies, high household debt levels, and changing consumer preferences. Annual pickup truck sales have fallen. The decline has affected local parts manufacturers that depend on pickup truck production.

Historically, pickup trucks accounted for around 60% of Thailand’s total vehicle production, while passenger vehicles represented approximately 40%. That balance has now reversed, with passenger vehicles accounting for roughly 60% of production.

Industry representatives noted that much of the growth in passenger vehicle output has been driven by Chinese automakers operating BEV production facilities in Thailand (like the Geely Radar pickup truck), while internal combustion engine pickup truck production continues to be affected by the global shift towards electrification.

Industry groups have warned that an increase in imported EVs after 2027 could further reduce demand for locally produced components, placing additional pressure on parts suppliers that are already adapting to changing market conditions. Automotive associations have urged the government to introduce measures that preserve domestic vehicle production and support the broader supply chain.

Meanwhile, research firms believe that the fragility of household purchasing power remains a major factor pressuring pickup truck sales due to two main issues. Firstly, household income is highly sensitive to low and uneven economic growth. Secondly, high household expenses and debt, coupled with deteriorating retail loan quality, have led to financial institutions tightening car loan approvals and it is especially those with uncertain income the main customer base for the pickup truck market who are affected.

Beyond household financial conditions, researchers believes that the recent increase in pickup truck prices, along with a shift in attitudes among some commercial vehicle users also contributed to the decline while manufacturers have focused more on developing lifestyle pickup trucks in recent years.

With the majority of pickup truck buyers still purchasing the vehicle for professional or commercial use (commercial pickup), prioritising cargo capacity and affordability, while being highly price-sensitive, some of them who don’t regularly need to carry heavy loads are considering alternatives such as SUVs with more attractive price tags, especially with the recent aggressive entry of Chinese manufacturers into this segment.