Thailand FTI welcomes proposed pickup trade-in subsidy scheme
Bangkok Post, 11 Nov '26
The Federation of Thai Industries (FTI) has welcomed the government's proposed pickup trade-in programme, saying it could revive domestic vehicle sales following a prolonged downturn.
The scheme is expected to receive cabinet approval in 2027. The Excise Department unveiled the full details last week, drawing a positive response from the automotive industry.
"This is good news for the industry as it will help stimulate new domestic demand," said Surapong Paisitpatanapong, adviser and spokesman for the FTI's Automotive Industry Club.
The scheme aims to encourage consumers to replace ageing pickup trucks with new models capable of running on B20 biodiesel. Buyers would receive a government subsidy of THB 40,000 (US$ 1,190) per vehicle, with automakers potentially providing additional support through a co-payment arrangement.
Consumers could also negotiate additional trade-in value with dealers, with final prices determined by market conditions.
Mr. Surapong said the THB 40,000 subsidy should be considered assistance towards a vehicle's down payment rather than a direct purchase price discount.
The FTI has been monitoring discussions on government support measures for the past two to three years, as pickup sales have declined sharply due to stricter bank loan approval requirements. The slowdown has affected auto parts manufacturers and suppliers, including tyre producers, forcing many factories to reduce production.
Pickup trucks account for 80-90% of automotive parts used in the domestic market, making the segment crucial to the supply chain.
The Excise Department has submitted the proposal to a committee overseeing the utilisation of the government's THB 400 billion emergency loan programme before its onward submission to the cabinet. According to a financial official, up to THB 6 billion could be allocated to fund the initiative.
Officials said the programme would support the transition towards cleaner transport by scrapping older vehicles, many of which comply only with Euro 1 or Euro 2 emissions standards. Increased use of B20 fuel, which contains 20% palm oil-derived methyl ester, would also help reduce crude oil imports.
