Thailand's premium and luxury car market is expected to face a slowdown as high household debt, sluggish economic growth and stricter lending criteria continue to weigh on consumer demand, according to Performance Motors, a subsidiary of Malaysia-based Sime Motors and the authorised dealer for BMW, MINI and Porsche.

Paul Chan Aing Sheng, Managing Director of Performance Motors, stated that local banks and financing companies have tightened loan requirements, requesting additional documentation from prospective buyers.

Although the stricter requirements have not resulted in outright loan rejections, approximately 10% of prospective customers in the premium vehicle segment are experiencing delays in obtaining loan approvals, he said.

The move reflects lenders' concerns regarding rising non-performing loans, with household debt standing at 86% of GDP, according to the Public Debt Management Office.

Industry data indicates a slowdown in the market. The Department of Land Transport reported that new registrations of premium and luxury vehicles declined by 19.1% year-on-year in the first quarter of 2026.

BMW recorded the highest number of registrations in the segment, followed by Mercedes-Benz and Volvo. At the same time, Chinese automakers have expanded their presence in the market, increasing competition in the premium vehicle segment.

Mr. Chan said market conditions have become more challenging compared with the pre-pandemic period, with increased competition from Chinese premium car manufacturers adding further pressure.

Despite these challenges, he said BMW, MINI and Porsche are expected to maintain their presence in Thailand. Performance Motors expects its market share to increase to 15% in 2026, up from 12% in the previous year, driven largely by sales of its three brands. During the first half of 2026, the company's market share had already reached 14%.

Sime Motors has stated that it intends to continue its operations in Thailand over the long term. Since 2021, the company has invested more than THB 1.5 billion (US$ 44.75 million) in the country. In 2025, it invested more than THB 500 million in the Porsche Pattaya project, citing Thailand's role as one of its markets in Southeast Asia, where per capita consumer spending remains relatively high.

Performance Motors operates five showrooms and service centres across Bangkok and other provincial locations, in addition to body and paint facilities and certified pre-owned BMW outlets. The company plans to expand its certified pre-owned vehicle business in Bangkok, adding to its existing operations in Don Muang and Ayutthaya.

Performance Motors has also updated its showrooms by introducing co-working spaces aimed at younger customers. In addition, it has partnered with PTT Oil and Retail Business Plc to offer coffee products under the Pacamara brand.