Performance Motors' showroom on Charan Sanitwong Road.
Thailand's premium and luxury car market is bracing for a slowdown as household debt, sluggish economic growth and stricter lending criteria weigh on consumer demand, says Performance Motors, a subsidiary of Malaysia-based Sime Motors and authorised dealer for BMW, Mini and Porsche.Paul Chan Aing Sheng, managing director of Performance Motors, said local banks and financing companies have tightened loan requirements, demanding additional documentation from buyers.
While this has not resulted in outright loan rejections, around 10% of prospective customers in the premium segment are facing delays in securing approvals, he said.
The move reflects lenders' concerns over rising non-performing loans, with household debt tallying 86% of GDP, according to the Public Debt Management Office.
Industry data underscores the slowdown. The Department of Land Transport reported new registrations of premium and luxury cars fell by 19.1% year-on-year in the first quarter of 2026 to 6,518 units.
