BANGKOK – Thailand’s government is looking at a plan to let owners of pickup trucks that are 20 to 25 years old trade them in for new ones. This trade-in would come with a tax discount to help boost slow sales, said Finance Minister Pichai Chunhavajira on Monday.

Talks with relevant groups have already started, according to Pichai, but full details have not been shared yet.

Truck sales in Thailand saw a small increase in April for the first time in about two years. However, demand for pickup trucks continued to fall. Tighter lending rules and high household debt have made it tough for many buyers to finance new vehicles.

Earlier this year, there were reports that officials were in talks with car makers about starting a vehicle trade-in and scrapping scheme to help revive the auto sector, which is dealing with its worst downturn in decades.

Thailand is the largest car production base in Southeast Asia and exports vehicles for companies like Toyota, Honda, and BYD.

The finance minister also mentioned new steps to help with debt relief and to keep local energy prices steady. He said energy prices in Thailand should not be affected unless problems in the Middle East get worse. Capital flows in and out of the country have stayed normal.

Vehicle sales in Thailand for 2025 have shown a mixed performance, with a notable decline in overall sales compared to 2024, driven by economic challenges and shifts in consumer preferences.

According to the Federation of Thai Industries (FTI), vehicle sales in April increased by 1.0% year-over-year (YoY) to 47,193 units. However, the first four months of 2025 saw a cumulative decline of 4.8% YoY, with total sales reaching 200,386 units.

The modest April increase was driven by stronger electric passenger car sales, though pickup truck sales continued to decline due to tighter credit approval policies amid high household debt and a sluggish economy.

Sales in March dropped by 0.5% YoY to 55,798 units, with the first three months recording 153,193 units, down 6.5% YoY. The decline was primarily due to reduced pickup truck sales, influenced by cautious auto loan approvals amid high household debt, slow economic growth, and rising living costs.

The pick-up truck segment, which historically accounts for nearly half of Thailand’s vehicle sales, has seen significant declines. In April 2025, pickup truck sales continued to drop due to stricter loan approvals and high household debt.

The Toyota Hilux was the best-selling model in April with 4,997 units, followed by the Isuzu D-Max with 4,681 units.