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27 Apr 2026

Econ Digest

Thailand’s car trade in program involves multiple factors that must be considered to promote domestic production.

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  • ​The government is considering a car trade-in program (trade-in an old car for a new car) to address the slowdown in domestic vehicle production and reduce air pollution from emissions. KResearch believes that although the program has not yet been finalized, there are several aspects the government should consider as guidelines to promote domestic automobile production.
  • If focusing on older vehicles with high emissions, particularly those over 20 years old, most of which are pickup trucks with a domestically produced component share of around 90%, it is found that current production of electric vehicle (xEV) pickup trucks remains very limited. If a trade-in program for pickup trucks is implemented, additional collaborative development efforts with the private sector may be required.
  • Given limited budget, if the subsidy provided is not substantial or must be structured differently according to vehicle type or age, extending the duration could help increase the number of participating vehicles. This would be beneficial for both domestic vehicle production and air pollution reduction.
  • Exporting old used vehicles overseas should not be the main approach, as the market is limited and highly competitive, especially for vehicles over 20 years old. Developing a vehicle scrappage program alongside the trade-in program is therefore necessary.

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