Thai Auto Sales May Drop 50% In 2009

[MeetJohnDoe]

Many analysts are projecting that new car sales may fall up to 50% in Thailand this year. Just today, GM Thailand announced around 900 layoffs at their Rayong plant (about 1/3 of the workforce). With the cratering of the auto market this year, it is likely there will be some major promotions and incentives from the manufacturers' soon...and this could be a very good year to buy a car for anyone in the market.

I would imagine that used cars will also be going for a song as well.

[jtp]

Many analysts are projecting that new car sales may fall up to 50% in Thailand this year. Just today, GM Thailand announced around 900 layoffs at their Rayong plant (about 1/3 of the workforce). With the cratering of the auto market this year, it is likely there will be some major promotions and incentives from the manufacturers' soon...and this could be a very good year to buy a car for anyone in the market.

I would imagine that used cars will also be going for a song as well.

I hope so,but sadly by the time it all happens it will most likely have effected my business and i won't be able to afford a new car!

[dave_boo]

Or than again they could do the typical Thai song and dance and raise prices to try and recoup the money they think they're losing (edit)by raising prices(/edit).

Edited February 18, 2009 by dave_boo

[kartman]

Perhaps next month GM will cut another 17% of the workforce then the 50% left will be able to produce the correct amount of vehicles for the market .

[stingray]

Many analysts are projecting that new car sales may fall up to 50% in Thailand this year. Just today, GM Thailand announced around 900 layoffs at their Rayong plant (about 1/3 of the workforce). With the cratering of the auto market this year, it is likely there will be some major promotions and incentives from the manufacturers' soon...and this could be a very good year to buy a car for anyone in the market.

I would imagine that used cars will also be going for a song as well.

No, this will not be. It's not only about people don't want buy new cars, its because the finance companies getting much stricter and tighter, so many peaple not pass. Peaple not pass the finance requirements, they will buy cheap used cars, even maybe to convert with LPG. Older cars are rare at the moment, prices for older cars increased in compare 2 years ago. We not talk about junkcars, we talk about the average used car in good condition. There are plenty of 400'000 Baht used cars on the market, but there is almost no 150'000 Baht Used Car to find. Because peaple with lower income buy them now.

[tcris52]

Many analysts are projecting that new car sales may fall up to 50% in Thailand this year. Just today, GM Thailand announced around 900 layoffs at their Rayong plant (about 1/3 of the workforce). With the cratering of the auto market this year, it is likely there will be some major promotions and incentives from the manufacturers' soon...and this could be a very good year to buy a car for anyone in the market.

I would imagine that used cars will also be going for a song as well.

I'd sure like to see this. I'm in the market for a car and it seems like every dealer pulls out the standard price list and tells me this is what it is. No breaks on financing that I can see either, at least not from the major dealers. Chevy seems to have some financing incentives but the prices on their cars are considerably higher that Honda or Toyota.

Conventional economic wisdom says that when the market is down, you lower prices and/or give financing incentives. Doesn't seem to be happening here. I'm inclined to agree with the other post here that when the market is down, they raise the prices to make up for the lost sales.

Tony

[MeetJohnDoe]

Conventional economic wisdom says that when the market is down, you lower prices and/or give financing incentives. Doesn't seem to be happening here. I'm inclined to agree with the other post here that when the market is down, they raise the prices to make up for the lost sales.

I was here during the last major downturn a decade ago...believe me, there were najor incentives from the manufacturers' then and I'm sure there will be even more this time around. I wouldn't expect much from the dealers themselves but they will pass along the direct and indirect incentives they get from the manufacturers.

[MeetJohnDoe]

Well I see my prediction is already coming to fruition: Item - I see that BMW is offering 0% financing for 3 years (with 25% down) for the purchase of 320d models. This will just be the start. Soon, we will be seeing free first-class insurance and scheduled maintenance offers. That can really start to add up to some savings on buying/running a vehicle.

[tcris52]

Conventional economic wisdom says that when the market is down, you lower prices and/or give financing incentives. Doesn't seem to be happening here. I'm inclined to agree with the other post here that when the market is down, they raise the prices to make up for the lost sales.

I was here during the last major downturn a decade ago...believe me, there were najor incentives from the manufacturers' then and I'm sure there will be even more this time around. I wouldn't expect much from the dealers themselves but they will pass along the direct and indirect incentives they get from the manufacturers.

So the key seems to be to wait to buy. However, at the risk of changing the thread, I'm going to need a car for some traveling I intend to do. Is there a method for getting a decent, short-term monthly rental rate (or even a 90-day commitment)? I'm in Khon Kaen but could travel some to get a deal.

Tony

[ignis]

Many analysts are projecting that new car sales may fall up to 50% in Thailand this year

Strange as to me it would appear there are more red plated cars this year then there has ever been in previous years, and not just the cheaper one. [Finance is much harder to get now ??]

[MeetJohnDoe]

I note too that the government, in its economic rescue plans focusing on the auto industry, is considering lowering the excise tax up to B 50,000 per vehicle...that's another US$ 1500 savings per car. If this comes to pass, and then factoring in manufacturer incentives to dealers and direct from manufacturer to customer promotions, the savings will really start to add up.

For those with steady jobs, pensions, or savings...this year and the next will likely be the best time to buy a car in a long while.