Honda Makes Record Sales In Thailand: Flood Recovery

[webfact]

Honda makes record sales

The Nation

source: automotivefocusgroup.com

BANGKOK: -- Since resuming full production at its Ayutthaya manufacturing plant in April 2012, Japanese auto-maker Honda has made a dashing come-back to achieve record sales in Thailand. Honda, which launched nine new models in the past seven months, sold 21,265 vehicles in October.

This represents an increase of 14 per cent over the 18,614 vehicles sold in September, setting the highest-ever monthly sales record in the company's history. Accumulated sales from January to October this year were 127,709 vehicles, exceeding Honda's previous annual sales record of 114,056 in 2010.

Honda was also the sales leader in October in Thailand's passenger car market led by the new CR-V.

"By early 2012, the flood had disrupted our production for a number of months," said Honda Automobile (Thailand) executive vice president Pitak Pruittisarikorn. "However, we were able to resume production rapidly and returned stronger, thanks to our employees' contributions and great support from our customers, business partners and the government. We have launched the largest-ever number of new models since then, which has helped Honda to achieve several new sales records on a continual basis. We believe that accumulated sales will exceed our target of 170,000 vehicles by the end of the year, which will be Honda's largest-ever accumulated sales for an entire year."

Honda is all set to launch its 10th new model for the year - the Brio Amaza sedan - in Bangkok on November 23.

-- The Nation 2012-11-17

[asiawatcher]

I wonder if rust is a future issue in some of the cars that were sold...

[culicine]

I wonder if rust is a future issue in some of the cars that were sold...

No, but its a current issue in the new ranger/bt-50 that were never affected by floods !

[fiberman]

Honda may have record sales but they also seem to have a record number of breakdowns! Our local Honda dealer is full to overflowing and they have had my car now for over a week to replace the air con compressor. It was supposed to be ready today but now it seems it may be another 3 days!

I had intended buying a new Civic next month but after all this hassle I think I shall be going back to Toyota.

[smileplur]

Oddly enough, heading to the Honda dealership today ....

[LuckyLew]

Does this have anything to do with the Gov't offer help to first time car buyers?

[smileplur]

^^ I am sure it does. That's a big reason for the timing of our purchase.

[Soi Sauce]

Does this have anything to do with the Gov't offer help to first time car buyers?

Don'ty ou mean to help MPs who have shares in auto co.s and dealerships?

[jerrysteve]

Between the tope of the line Honda and the top of the line Toyotas, which I have owned both, they are both excellent vehicles based on my experience with them..

Of the 2 makes, the repair bills on both cars has beaten the Detroit crap hands down.

[catmac]

Well done Honda.

I seem to remember one of TV's armchair experts predicting Honda's demise in Thailand at the time of the floods, a good reson to ignore many of the self-appointed "experts" who post on here, and use your own common sense instead.

[chrisinchaam]

Was lucky enough to get a Japanese import Accord and very happy with it. I had a civic before which was also a nice car many other cars I like but in Thailand best choice has to be Honda or Toyota.

[falangjim]

Yea!!! More cars to clog up Bangkok's traffic!

[AngryParent]

I wonder if rust is a future issue in some of the cars that were sold...

Floods and rust

[Hugo6]

it's a positive sign for the thai economy. i guess the new car program timing was good for the post-flood production too.

[philw]

it's a positive sign for the thai economy. i guess the new car program timing was good for the post-flood production too.

it's a positive sign for the thai economy. i guess the new car program timing was good for the post-flood production too.

Of course and quite the opposite to all the rubbish spouted on here by the usual naysayers.

"Irreparable flood damage, Honda and auto industry doomed, no more Japanese investment etc etc etc and all because of the Prime Ministers name and Burberries........."

( we know who we are, don't we children ?)

[rixalex]

it's a positive sign for the thai economy. i guess the new car program timing was good for the post-flood production too.

The first time car buyer tax rebate scheme, if numbers are to be believed, doesn't seem to have made a big impact. The government extended the period of the offer because of low take up. The problem with it in my view was that it didn't reduce the buying price of the vehicles for first time customers, so people who took advantage of the offer, were people who could either afford to buy the car at full price anyway, or people who were able to get finance at the full price anyway. The whole premise of the idea was to lend a hand to first time buyers who would otherwise struggle buying their first car. The premise of the idea has largely failed because of the way it was all poorly thought through. It didn't help the poor. Middle classes are the ones who seemed to have benefited most from it. If this had been a Democrat policy no doubt we'd be hearing all about how they were "taking care of their own".

Still, it may in some small part account for Honda's healthy figures, so there has been some negligible up side, which will i'm sure be sufficient to have government supporters hailing the genius of it all from the roof tops.

[Hugo6]

it's a positive sign for the thai economy. i guess the new car program timing was good for the post-flood production too.

The first time car buyer tax rebate scheme, if numbers are to be believed, doesn't seem to have made a big impact. The government extended the period of the offer because of low take up. The problem with it in my view was that it didn't reduce the buying price of the vehicles for first time customers, so people who took advantage of the offer, were people who could either afford to buy the car at full price anyway, or people who were able to get finance at the full price anyway. The whole premise of the idea was to lend a hand to first time buyers who would otherwise struggle buying their first car. The premise of the idea has largely failed because of the way it was all poorly thought through. It didn't help the poor. Middle classes are the ones who seemed to have benefited most from it. If this had been a Democrat policy no doubt we'd be hearing all about how they were "taking care of their own".

Still, it may in some small part account for Honda's healthy figures, so there has been some negligible up side, which will i'm sure be sufficient to have government supporters hailing the genius of it all from the roof tops.

well maybe there is some data out there for that.

i just figure that the timing of the program was ok for the people buying a car and ok for the companies recovering from the flood.

i suppose the program was never meant to let people who can't afford a car buy one, but just to make a car more affordable for people who can. it was tax-based, right? so it couldn't really be anything else.

[kutjebu]

Honda may have record sales but they also seem to have a record number of breakdowns! Our local Honda dealer is full to overflowing and they have had my car now for over a week to replace the air con compressor. It was supposed to be ready today but now it seems it may be another 3 days!

I had intended buying a new Civic next month but after all this hassle I think I shall be going back to Toyota.

Yes,read this:

• 
  

Saturday, November 17th, 2012 | Posted by admin

Toyota recalls 2.7 million vehicles for steering & water pump problems.

Edited November 18, 2012 by kutjebu

[fiberman]

Honda may have record sales but they also seem to have a record number of breakdowns! Our local Honda dealer is full to overflowing and they have had my car now for over a week to replace the air con compressor. It was supposed to be ready today but now it seems it may be another 3 days!

I had intended buying a new Civic next month but after all this hassle I think I shall be going back to Toyota.

Yes,read this:

• 
  

Saturday, November 17th, 2012 | Posted by admin

Toyota recalls 2.7 million vehicles for steering & water pump problems.

At least Toyota own up when there is a problem. There have been at least 2 recalls in the US for my model CRV but try getting those problems fixed in Thailand under warranty.

[rixalex]

The first time car buyer tax rebate scheme, if numbers are to be believed, doesn't seem to have made a big impact. The government extended the period of the offer because of low take up. The problem with it in my view was that it didn't reduce the buying price of the vehicles for first time customers, so people who took advantage of the offer, were people who could either afford to buy the car at full price anyway, or people who were able to get finance at the full price anyway. The whole premise of the idea was to lend a hand to first time buyers who would otherwise struggle buying their first car. The premise of the idea has largely failed because of the way it was all poorly thought through. It didn't help the poor. Middle classes are the ones who seemed to have benefited most from it. If this had been a Democrat policy no doubt we'd be hearing all about how they were "taking care of their own".

Still, it may in some small part account for Honda's healthy figures, so there has been some negligible up side, which will i'm sure be sufficient to have government supporters hailing the genius of it all from the roof tops.

well maybe there is some data out there for that.

i just figure that the timing of the program was ok for the people buying a car and ok for the companies recovering from the flood.

i suppose the program was never meant to let people who can't afford a car buy one, but just to make a car more affordable for people who can. it was tax-based, right? so it couldn't really be anything else.

Nice try.

The government restricted applications to first time buyers, because the policy was meant to able people who previously would not have been able to afford a car purchase, to buy one, and had the policy worked in such a way that the buying price was reduced, that is exactly what it would have achieved. Because it didn't, because the sticker price of lets say a Honda Jazz at 600,000, remained at 600,000, it meant that buying a car like this was still as equally difficult for those on a lower income as it was before. People who benefited were people who could already afford to buy a car, who didn't actually particularly need the help.

If you don't see that as a failing of the entire premise of the idea, if you think gearing the policy in such a way that the less well off were excluded from taking advantage of this tax relief was good planning, well then i assume you must be a government spokesman... it's the only explanation i can think of.

[chiangmaikelly]

I thought the first time buyers program was to help Thai auto production. "First-Time Car Buyers to Receive an Excise Tax Deduction. The Government believes that its first-car buyer program will contribute to the growth of the automotive industry, which has become a driving force for the Thai economy.Thailand stands a good chance of expanding the automotive industry, as several foreign investors, especially the Japanese, have moved their production bases to the country. In 2010, Thailand produced 1.6 million vehicle units, an increase of 60 percent and the highest ever in the history of Thai auto manufacturing. Out of this number, 900,000 units were exported, a 68 percent increase, and 700,000 units were sold domestically, representing a 27 percent increase." http://thailand.prd.go.th/view_news.php?id=5859&a=2

[chiangmaikelly]

The first time car buyer tax rebate scheme, if numbers are to be believed, doesn't seem to have made a big impact. The government extended the period of the offer because of low take up. The problem with it in my view was that it didn't reduce the buying price of the vehicles for first time customers, so people who took advantage of the offer, were people who could either afford to buy the car at full price anyway, or people who were able to get finance at the full price anyway. The whole premise of the idea was to lend a hand to first time buyers who would otherwise struggle buying their first car. The premise of the idea has largely failed because of the way it was all poorly thought through. It didn't help the poor. Middle classes are the ones who seemed to have benefited most from it. If this had been a Democrat policy no doubt we'd be hearing all about how they were "taking care of their own".

Still, it may in some small part account for Honda's healthy figures, so there has been some negligible up side, which will i'm sure be sufficient to have government supporters hailing the genius of it all from the roof tops.

well maybe there is some data out there for that.

i just figure that the timing of the program was ok for the people buying a car and ok for the companies recovering from the flood.

i suppose the program was never meant to let people who can't afford a car buy one, but just to make a car more affordable for people who can. it was tax-based, right? so it couldn't really be anything else.

Nice try.

The government restricted applications to first time buyers, because the policy was meant to able people who previously would not have been able to afford a car purchase, to buy one, and had the policy worked in such a way that the buying price was reduced, that is exactly what it would have achieved. Because it didn't, because the sticker price of lets say a Honda Jazz at 600,000, remained at 600,000, it meant that buying a car like this was still as equally difficult for those on a lower income as it was before. People who benefited were people who could already afford to buy a car, who didn't actually particularly need the help.

If you don't see that as a failing of the entire premise of the idea, if you think gearing the policy in such a way that the less well off were excluded from taking advantage of this tax relief was good planning, well then i assume you must be a government spokesman... it's the only explanation i can think of.

She said so far over 90,000 first-time vehicle buyers have received tax refunds worth over Bt6 billion. The Finance Ministry expected that over 300,000 buyers would want to apply for the tax refunds but the car manufacturers could not deliver their vehicles in time of the deadline due to severe flooding late last year.

http://www.nationmultimedia.com/breakingnews/Cabinet-extends-tax-refund-for-first-time-car-buye-30187274.htm

[Ned]

Yeah and 95% of them bought on credit. At least Honda's got the money in the pocket and won't pack up and leave after all. But the cars still have to be genuinely paid for at some stage. Welcome to The Auto Bubble.

[chiangmaikelly]

Yeah and 95% of them bought on credit. At least Honda's got the money in the pocket and won't pack up and leave after all. But the cars still have to be genuinely paid for at some stage. Welcome to The Auto Bubble.

So any purchase made on credit contributes to an economic bubble? Banks have been loaning money for houses and cars for quite some time now I think.

[rixalex]

I thought the first time buyers program was to help Thai auto production. "First-Time Car Buyers to Receive an Excise Tax Deduction. The Government believes that its first-car buyer program will contribute to the growth of the automotive industry, which has become a driving force for the Thai economy.Thailand stands a good chance of expanding the automotive industry, as several foreign investors, especially the Japanese, have moved their production bases to the country. In 2010, Thailand produced 1.6 million vehicle units, an increase of 60 percent and the highest ever in the history of Thai auto manufacturing. Out of this number, 900,000 units were exported, a 68 percent increase, and 700,000 units were sold domestically, representing a 27 percent increase." http://thailand.prd....php?id=5859&a=2

The first time buyers scheme was supposed to be about helping Thai auto production, and helping those on lower incomes who previously had been unable to afford car purchase... hence why it was restricted to first time buyers.

[chiangmaikelly]

I thought the first time buyers program was to help Thai auto production. "First-Time Car Buyers to Receive an Excise Tax Deduction. The Government believes that its first-car buyer program will contribute to the growth of the automotive industry, which has become a driving force for the Thai economy.Thailand stands a good chance of expanding the automotive industry, as several foreign investors, especially the Japanese, have moved their production bases to the country. In 2010, Thailand produced 1.6 million vehicle units, an increase of 60 percent and the highest ever in the history of Thai auto manufacturing. Out of this number, 900,000 units were exported, a 68 percent increase, and 700,000 units were sold domestically, representing a 27 percent increase." http://thailand.prd....php?id=5859&a=2

The first time buyers scheme was supposed to be about helping Thai auto production, and helping those on lower incomes who previously had been unable to afford car purchase... hence why it was restricted to first time buyers.

I would think political marketing strategy along with increase revenues of tax dollars and foreign investment. I don't see anything wrong with the idea. It worked as shown by the increase in Honda sales.

[rixalex]

The first time buyers scheme was supposed to be about helping Thai auto production, and helping those on lower incomes who previously had been unable to afford car purchase... hence why it was restricted to first time buyers.

I would think political marketing strategy along with increase revenues of tax dollars and foreign investment. I don't see anything wrong with the idea. It worked as shown by the increase in Honda sales.

When you slash the price of cars by 100,000 baht, of course sales are going to go up. Hardly surprising or any great feat really is it? Getting sales up without losing government revenue, that would have been impressive. Or failing that, implementing the system that they did but geared in such a way that the less well off might benefit, would have been good.

[chiangmaikelly]

I would think political marketing strategy along with increase revenues of tax dollars and foreign investment. I don't see anything wrong with the idea. It worked as shown by the increase in Honda sales.

When you slash the price of cars by 100,000 baht, of course sales are going to go up. Hardly surprising or any great feat really is it? Getting sales up without losing government revenue, that would have been impressive. Or failing that, implementing the system that they did but geared in such a way that the less well off might benefit, would have been good.

The Ministry of Finance stated that the first-car buyer program would enable at least 500,000 low-income earners to have the opportunity to own a car. At the same time, it would enable the Government to earn more from the collection of corporate income tax, value-added tax, and car excise tax.

[rixalex]

I would think political marketing strategy along with increase revenues of tax dollars and foreign investment. I don't see anything wrong with the idea. It worked as shown by the increase in Honda sales.

When you slash the price of cars by 100,000 baht, of course sales are going to go up. Hardly surprising or any great feat really is it? Getting sales up without losing government revenue, that would have been impressive. Or failing that, implementing the system that they did but geared in such a way that the less well off might benefit, would have been good.

The Ministry of Finance stated that the first-car buyer program would enable at least 500,000 low-income earners to have the opportunity to own a car. At the same time, it would enable the Government to earn more from the collection of corporate income tax, value-added tax, and car excise tax.

What part of my explanation about why the people who couldn't afford to buy a car were still unable to buy a car with this programme, are you struggling with?

[chiangmaikelly]

I would think political marketing strategy along with increase revenues of tax dollars and foreign investment. I don't see anything wrong with the idea. It worked as shown by the increase in Honda sales.

When you slash the price of cars by 100,000 baht, of course sales are going to go up. Hardly surprising or any great feat really is it? Getting sales up without losing government revenue, that would have been impressive. Or failing that, implementing the system that they did but geared in such a way that the less well off might benefit, would have been good.

The Ministry of Finance stated that the first-car buyer program would enable at least 500,000 low-income earners to have the opportunity to own a car. At the same time, it would enable the Government to earn more from the collection of corporate income tax, value-added tax, and car excise tax.

What part of my explanation about why the people who couldn't afford to buy a car were still unable to buy a car with this programme, are you struggling with?

I was responding to your statement, "Getting sales up without losing government revenue, that would have been impressive." I wrote. " At the same time, it would enable the Government to earn more from the collection of corporate income tax, value-added tax, and car excise tax."

No need to flame using words like "are you struggling with?"

Edited November 18, 2012 by chiangmaikelly