The Thai government is considering a trade-in scheme with carmakers to revitalize the country’s declining automotive sector. The scheme would allow consumers to trade in their used vehicles for a reduced price on a new one, with the aim of improving the sector’s competitiveness and reducing environmental waste. The Thai auto sector is significant, comprising 10% of the country’s GDP, but has been suffering since the pandemic.
The scheme is being pushed by industry leaders, including Toyota, which has been discussing an “End of Life Vehicle” scheme with the government. The proposal is still in its early stages, but if approved, it could benefit the sector by increasing sales for automakers, promoting the purchase of newer, more environmentally friendly vehicles, and creating new employment opportunities in the country’s recycling industry.
However, the proposal is pending finalization, as it involves multiple government agencies. The Federation of Thai Industries (FTI) and the private sector are working together on the proposal, but it has not yet reached the finance ministry. The scheme could be a game-changer for the country’s car market, stimulating the market and driving investment in the sector, according to the vice president of Thailand’s Used Car Association, Suwit Chobpradu.