Bangkok: The government has directed the SME Bank to initiate the “Used Pickup Trucks with Treasury Guarantee” measure to boost the economy and support SMEs in purchasing pickup trucks for business purposes. This initiative is projected to generate loans exceeding 3.4 billion baht, sustain over 153,000 jobs, and produce a minimum of 14 billion baht in economic benefits.
According to Thai News Agency, Ms. Sasikan Wattanachan, Deputy Government Spokesperson, announced that the Small and Medium Enterprise Credit Guarantee Corporation (TCG) is broadening support for SMEs aiming to acquire commercial pickup trucks. The “Krab Phee Mee Khlang Kham” (Secondhand Pickup Truck) program has been introduced, with an initial loan guarantee of 1 billion baht and 500 million baht allocated for the first phase. This builds on a similar program launched in March 2025, designed to assist SMEs, farmers, and small transportation businesses in securing financing for both new and used pickup trucks. The initiative seeks to “unlock” business potential and aid the sluggish automotive sector while revitalizing the broader Thai economy.
The current value of the used pickup truck market is about 17 billion baht, encompassing roughly 38,000 vehicles. A sharp decline in used pickup truck prices, alongside a significant increase in repossessions between 2023 and 2024, has led financial institutions to adopt a cautious approach to lending. However, the measures implemented by SME Bank (Thai Credit Guarantee Corporation) are expected to mitigate risks and enhance confidence among lenders. These measures are anticipated to assist over 7,600 SMEs in obtaining loans for used pickup trucks.
Presently, non-bank entities provide 60% of used pickup truck loans, while financial institutions and affiliated companies account for the remaining 40%. The “Pickup (Used) with Finance Guarantee” measure is noteworthy for offering a free guarantee fee for the initial three years, funded by the government and the Ministry of Finance. From the 4th to the 7th year, a guarantee fee of 1.5% per year of the annual guarantee obligation is charged. For instance, if the loan obligation in the 4th year is 300,000 baht, SMEs will incur a guarantee fee of only 4,500 baht.