Research by ttb analytics and published by PPTVHD36
AUTOMAKERS are facing a sharp slide in domestic sales of pickup trucks this year with the expected total of 171,000 units being a 24-year low and a contraction of 7% year-on-year, PPTVHD36 said yesterday (Jan. 22).
ttb analytics, an economic analysis centre, said the drop in domestic sales is due to middle-to-low income households being shaken by uneven economic recovery, cautious lending by financial institutions, and changing consumer behaviour spurred by increased market competition.
It is now necessary for manufacturers to adjust their strategies and find ways to reach buyers, particularly those with limited budgets, and introduce sustainable carbon-reducing technologies to ensure the pickup truck remains the best-selling vehicle.
The expected drop in sales of one-ton pickup trucks to 171,000 units this year is part of a continuous downward trend. Historically, pickup truck sales reached around 400,000-500,000 units per year, but recently they have fallen to only 200,000-300,000 units per year. New registration of this vehicle in almost all provinces has contracted for several years now with provincial sales accounting for as much as 60-70% of the total.
ttb analytics believes 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, ttb analytics 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.
This trend is also impacting the popularity of pickup trucks designed as a hybrid for commercial and lifestyle use, emphasising both versatility and image.
Furthermore, the new excise tax this year is pressuring sales of both ordinary pickup trucks and high-performance PPVs (passenger pickup vehicles). The new excise tax structure, effective Jan. 1, shifts the criteria from engine type and cylinder capacity to primarily carbon dioxide (CO2) emissions and drivetrain technology. This will result in higher excise tax rates for internal combustion engine (ICE) and hybrid vehicles with high CO2 emissions.
The change will undoubtedly impact the cost structure and selling price of pickup trucks, which mostly use diesel engines. The excise tax for pickup trucks has increased from 2-10% to 2-13%, and for PPVs it has gone up from 10-40% to 10-50%, leading to a 2-10% price hike for new vehicles.
However, while the pickup truck export market showed strong growth last year, this was partly to compensate for the slowdown in domestic demand. This is evident in the fact that the production of one-ton pickup trucks for export (Completely Built Up: CBU) in 2025 is more than three times higher than domestic sales, compared to several years ago when the ratio of export production to domestic sales was typically closer (around 1-1.5 times).
Furthermore, in future the demand for internal combustion engine vehicles, especially diesel pickup trucks, may continue to decline in the global market due to stricter CO2 emission standards, including the Euro6 emission standards.
Amid these changes automakers should adopt a strategic direction focused on reaching consumers with limited purchasing power. This should include developing more affordable models, coupled with easier financing options to alleviate the financial burden on households and small businesses. Simultaneously, they should maintain the premium market segment through design, performance, and brand differentiation.
They also have to start developing low-CO2 emission engine technologies to maintain the long-standing position of the Thai pickup truck as a product champion within the supply chain.
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This and Front Page – Some pickup trucks. Photos – PPTVHD36
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