Thailand’s Auto Leasing Association proposed the government to stimulate domestic car sales by considering enabling monthly car installment payments to qualify as a tax deduction for individual buyers, similar to the current provision that allows corporate buyers to deduct car installments from their taxes.
This follows the release of data by Mr. Tirachart Chiracharasporn, Managing Director of Kasikorn Leasing Company Limited as the consultant of Thai Hire-Purchase Association, showing that new car sales in the country plummeted to 572,568 units in 2024, marking a significant 26.19% decline.
He projected that the Auto Loan (Financial Lease) market in 2025 may either stabilize or experience a slight contraction. However, there is potential for positive growth if adverse conditions improve and the market is bolstered by supportive policies aimed at promoting the auto sector in Thailand.
Following the development, the proposed measure, as mentioned above, could potentially enhance domestic car sales and stimulate auto loan growth to a certain degree by appealing to customers with purchasing power and a solid credit profile.
Meanwhile, it remains to be seen if the government will take this proposal under consideration.