Vehicle Sales Set To Grow As Targeted Despite Rising Fuel Prices

[george]

Vehicle sales set to grow as targeted despite rising fuel prices

BANGKOK: -- The total sales of vehicles in Thailand are expected to grow as targeted although the price of oil on a global basis may reach US$141 per barrel and Thailand's domestic fuel prices may exceed 40 baht per litre in the second half of this year, according to an industry executive.

Vehicle Industry Association president Suparat Sirisuwanangkul said he believed that domestic sales of vehicles this year would still number around 680,000 units.

Exports will reach 770,000 units, up more than 20 per cent from last year, he predicted, with impressive growth in the ASEAN region, South America, and the Middle East.

He said that eco cars had gained increased popularity in the market.

In Thailand, sales of vehicles capable of using E-20 gasohol or natural gas for vehicles (NGV), had surged since its cost is 4-5 times lower than the price of gasoline.

E-20 gasohol is a blend of 80 per cent gasoline and 20 per cent ethanol.

Mr. Suparat, who is also an executive of Toyota Motors, said his company planned to introduce vehicles with an NGV modified engine in the third or fourth quarter.

However, most vehicles are produced as taxis to comply with the Ministry of Energy's policy to encourage commercial secctor vehicles such as taxis to use NGV instead of liquefied petroleum gas (LPG).

-- TNA 2008-05-21

[basjke]

Can someone explain why there is a push for NGV instead of LPG.Thought LPG was the better solution.

Edited May 21, 2008 by basjke

[cclub75]

Can someone explain why there is a push for NGV instead of LPG.Thought LPG was the better solution.

The push for NGV is surreal.

We have currently... 172 stations... (mainly in big cities)

Did you see the queues... at the station close to Central Lad Prao, on Viphavadi road ? Some days : 500 meters.

NGV is good for large cities. Absolutly not for upcountry (where it would be needed the most, ironically)... Impossible too for long distance buses... Unless they can -and want- to build a national network...

Anyway, the paper is a good reminder of the madness in Thailand (but actually everywhere) : 600 000 cars (passenger + commercial) are sold per year...

[cloudhopper]

Slightly but can anyone (who KNOWS FOR SURE about what's going on here in LOS please ) explain the differences, if any, between what's sold HERE as LPG cooking gas and LPG vehicle gas? CH

[Plus]

LPG comes from oil, which is mostly imported here, and, as a cooking gas, it's heavily subsidised. NGV or CNG is a gas that Thailand produces itself (or maybe imports from Burma, still cheap).

PTT is the only producer of NGV/CNG but the government owns a substantial stake in it and forces PTT to subsidise it, but not much.

Anyone can set up an LPG station and business is good, but NGV is sold only by PTT and PTT is not very quick to satisfy the demand. Actually there are factories dedicated to converting entire truck fleets to NGV, it's the consumer end that is a bit slow.

In macroeconomic terms NGV is the better long term option for Thailand.

[clausewitz]

Slightly but can anyone (who KNOWS FOR SURE about what's going on here in LOS please ) explain the differences, if any, between what's sold HERE as LPG cooking gas and LPG vehicle gas? CH

I think they are the same gas.

[midas]

I dont understand how so many Thai's can afford to keep buying these huge SUV's

and keep them on the road when in the USA you see how it is hurting the average

family finanically and yet here thhey dont seem to have any need to even cut back on

their driving habits ?

[Plus]

There are no huge SUVs in Thailand.

This year most growth comes from cars, not even pickup trucks. Small, fuel efficient vehicles - that's where it's going. Wait until eco-car projects come online, it will really boom then.

[jumnien]

There are two trends happening at the same time and they are linked and unstoppable. People are buying more cars and their asses are getting bigger. Raising the price of gasoline or cars or rice or other food commodities will do nothing to stop this trend. It's immutable.

[Scott]

I am wondering the same thing. Exactly what is the difference between NGV and LPG and which is the better solution and why.

[Seneque]

I dont understand how so many Thai's can afford to keep buying these huge SUV's

and keep them on the road when in the USA you see how it is hurting the average

family finanically and yet here thhey dont seem to have any need to even cut back on

their driving habits ?

Because in Thailand being bankrupt is a way of life ... it is not shameful do be heavily in debt ... and you really look bad if you might hint you can't afford it ...

[Cuban]

Exactly what is the difference between NGV and LPG and which is the better solution and why.

There are a couple of detailed threads in the motoring forum on this question.

LPG price is linked to oil price but price controlled due to use as cooking gas.

NGV is independant of oil price so 'should' be the lower price choice of the future.

The debate about Betamax and VHS video was similar - the 'better' choice did not win back in the '80s.

Discuss....

[Tony Clifton]

Whatever gas becomes more popular, they ll still rip us off.

[geriatrickid]

The result is still the same: the vehicles still need fuel and with the growth, Thailand will not be able to satisfy fuel demand, necessitating further imports driving up prices making vehicles an expensive luxury. Those are going to expensive flower pots eventually.