Stricter lending criteria have been cited as a major cause behind sluggish local car sales, potentially causing the country to miss its car manufacturing target for 2024. Low car sales are forecast to persist this year, with the loan rejection rate believed to be 30 - 40% of applications. The Automotive Industry Club said last year, sales of pure pickups in Thailand plunged by 31.8% year-on-year to 264,738 units. Responsible lending is meant to enhance the quality of household debt and reduce the debt ratio over the long term. FTI acknowledged that without government assistance to address the debt problem, car and auto parts businesses will suffer from declining sales and related industries will also bear the brunt./.

Source: Bangkok Post June 12, 2024 09:03 UTC