Car Sales In Thailand Expected To Reach One Million Units This Year

[webfact]

Car Sales Expected to Reach One Million Units This Year

BANGKOK: -- The Finance Ministry permanent secretary predicted the total amount of car sales in Thailand this year will reach up to one million units.

Finance Ministry Permanent Secretary Areepong Bhoocha-oom said after presiding over the launch of the First Auto Show Thailand 2012, that the overall automotive industry is expected to begin growing again this year after the heavy floods late last year.

It is likely that the total amount of vehicle sales this year will surpass one million units for the first time in Thailand's history. This year's target for car production is expected to be maintained at 1.8 million units.

Areepong spoke of the the government's tax rebate policy for first-time car buyers, saying that the scheme's unpopularity is likely due to the impact of the heavy floods late last year. However, the government has no plan to adjust its conditions or extend the scheme which is scheduled to expire at the end of this year.

He believes that the scheme will help stimulate domestic auto sales and achieve this year's target.

President of Kiatnakin Bank, Thawatchai Suthikijpisan, stated that the company's number of new loans for car purchases has expanded continuously. He attributed the robust growth partly to the government's first-time car buyers scheme.

However, Thawatchai noted that rising oil prices continue to be a major risk factor. If the global oil price increases to 145 dollars a barrel, it will have an affect on consumers' buying decision.

On the other side, Suppasak Dulalumbha, the General Manager of Mitsubishi Motors Thailand's Promotion Division, admitted that the higher oil prices certainly affects consumers' buying decision. However, he is still optimistic that the overall automobile industry will be grow by ten percent this year.

Suppasak noted that manufactures have to adjust themselves to manage their costs based on various risk factors. He added that Mitsubishi Motors will launch a new eco-car model this month to correspond with rising demand for energy-saving vehicles amid the high fuel prices.

Meanwhile, Pattanadej Asasappakij, President of King of Auto Product organizer of the First Auto Show Thailand 2012, said the government's first-time car buyer program will be more popular and will help boost more sales if it is implemented without a limit on the size of the car's engine.

Pattanadej stated that the high fuel price is unlikely to have a significant impact on consumers' buying decision, particularly for diesel-powered vehicles which are bought mostly by businesses.

He noted that the event is unrelated to the government's program and its name was thought up before the first car buyer policy was announced.

Pattanadej said the First Auto Show Thailand 2012, which offers both new and used cars to consumers, is being held at Bitec Bangna and will run until March 4.

Eighteen new car dealers and 20 used car dealers will showcase their products along with 30 auto-accessory vendors. It is expected that 1,000 new cars and 2,000 used cars will be sold at the event.

-- Tan Network 2012-03-01

[laurentbkk]

wow that's good ... means people can afford cars .... even at huge prices ..unfortunately that means more and more traffic in Bangkok

[Reasonableman]

Nice for the car manufacturers and petroleum companies, no doubt. The floods did some good for someone, then. It will also increase levels of debt (for 5 years or so) among the population. That's gotta be good for lenders and loan sharks, too.

As for the effects on the environment, does anyone really care?

[Shurup]

... the total amount of vehicle sales this year will surpass one million units for the first time in Thailand's history...

Corruption must be on a rise... Where do people get money or how do they get credits in spite of last year's flood and a loss of jobs???

[Shurup]

As for the effects on the environment, does anyone really care?

Not many people care as far as I can tell... Do you care?

[Reasonableman]

As for the effects on the environment, does anyone really care?

Not many people care as far as I can tell... Do you care?

I walk everywhere, and I own a car that I prefer not to use, so I guess I must be confused.

[Shurup]

I walk everywhere, and I own a car that I prefer not to use, so I guess I must be confused.

Seems like you care more than other people but cars alone just part of the problem.

[Reasonableman]

I walk everywhere, and I own a car that I prefer not to use, so I guess I must be confused.

Seems like you care more than other people but cars alone just part of the problem.

Agreed, but a large part, and the topic we are discussing is car sales.

Does Bangkok, or Thailand as a whole, really need another million cars on the road?

Haven't seen too many retired (wonder what happens to them?). I guess a lot were damaged/written off in the floods, too. I've seen a lot abandoned for several years on the roadside, which is a bit weird, so I wonder what the net increase would be.

Edited March 1, 2012 by Reasonableman

[asiascharlie]

Thailand needs more cars like it needs a hole in the head .A new train system is needed for people all over the country as well for transporting goods to the ports and from Issan where it is yet to be built .

[LuckyLew]

Is Thailand going to become a HUB for regional car sales?

[sparebox2]

I walk everywhere, and I own a car that I prefer not to use, so I guess I must be confused.

Seems like you care more than other people but cars alone just part of the problem.

Agreed, but a large part, and the topic we are discussing is car sales.

Does Bangkok, or Thailand as a whole, really need another million cars on the road?

Haven't seen too many retired (wonder what happens to them?). I guess a lot were damaged/written off in the floods, too. I've seen a lot abandoned for several years on the roadside, which is a bit weird, so I wonder what the net increase would be.

Yes, to replace the old ones.

[ratcatcher]

Thailand needs more cars like it needs a hole in the head .A new train system is needed for people all over the country as well for transporting goods to the ports and from Issan where it is yet to be built .

Dom you mean a railway extension to e.g. Mukdahan, Nakhon Phanom & Roi Et?

I believe trains serve southern Isaan to Ubon and go all the way to Laos via Nong Khai. Not too bad.