Automobile sales to fall due to oil and interest rises

BANGKOK: -- Domestic automobile sales are expected to fall during the second half of this year because of soaring oil prices and signs that interest rates may rise, according to the vice president of the Federation of Thai Industries' Automobile Business group, Ninnart Chaithirapinyo.

Automobile sales in Thailand rose by 13%, or about 280,000 units, during the first five months of 2005. Local automobile sales should increase by 10%, or about 680,000 units, for the whole year and exports are expected to be around 500,000 units, Mr. Ninnart said.

Soaring retail oil prices and hints that domestic interest rates will rise are likely to affect auto sales during the rest of the year as peoples’ purchasing power would decline, he said.

Oil prices and anticipated interest rate rises are expected to reduce sales by about 5%, he said.

People have now started buying small engine cars, of around 1,500 to 1,600 cc, in order to save on fuel costs, Mr. Ninnart.

More motorists may switch to using natural gas for vehicles (NGV) if more NGV stations are set up, said Mr. Ninnart. Many taxis and buses have also turned to NGV because its cheaper.

--TNA 2005-07-03

Maybe "expected" to fall, but it doesn't really seem like it if you're one of the 100+ people on the 4 month waiting list for a new Fortuner at my local Toyota dealership. 30,000 to the dealership (that doesn't go towards your car) just to bypass the waiting list and cut it down to a 2-3 week wait.

Don't know where you're buying from.

for me the new car will have to wait...don't need it at the moment, the trusty Tyoata is still working. "buying small engine cars, of around 1,500 to 1,600 cc"s a good idea.

Don't know where you're buying from.

We got ours at Toyota Krungthai on Ramintra at kilometer 8. Same for my nephew.

I thought you were a Merc man

I thought you were a Merc man

I needed a 4 wheel drive vehicle to get over the the eastern side of my front yard.

get one of those 4 wheel drive mercs

Great idea. Could be useful as an onsite rescue vehicle and perhaps for charity road rallies.

Just in time for the next Tsunami