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.
BMW led the segment, followed by Mercedes-Benz and Volvo.
Meanwhile, Chinese automakers have steadily expanded their presence, intensifying competition in the high-end market.
The market is more difficult compared with the pre-pandemic era, compounded by aggressive competition from Chinese premium carmakers, said Mr Chan.
Despite these challenges, he expressed confidence that BMW, Mini and Porsche would continue to strengthen their foothold in Thailand.
Performance Motors expects its market share to rise to 15% in 2026, up from 12% last year, driven largely by strong sales of its three flagship brands. In the first half of 2026, the company's share has already reached 14%.
Sime Motors has reaffirmed its long-term commitment to Thailand.
Since 2021, the company has invested more than 1.5 billion baht in the country. In 2025, it poured more than 500 million baht into the Porsche Pattaya project, signalling confidence in Thailand's role as a key market in Southeast Asia, where consumer spending per person remains high.
Performance Motors operates five showrooms and service centres across Bangkok and provincial areas, along with body and paint facilities and certified used BMW outlets.
The company plans to expand its certified used car business in Bangkok, adding to its existing venues in Bangkok's Don Muang and Ayutthaya.
The vendor also modernised its showrooms by introducing co-working spaces aimed at younger, lifestyle-driven customers, complemented by Pacamara-branded coffee service.
