Thai Car Sales Hit Record High

[webfact]

Thai car sales hit record high

BANGKOK: -- Thailand's vehicle sales reached 1,436,335 units last year, up 81 per cent, boosted by tax waivers for first-time buyers, industry sources said Monday.

Kyoici Tanada, president of Toyota Motor Thailand Company, attributed the surge to strong economic growth in 2012, a backlog in orders after the 2011 floods that knocked out several car factories for months, and to the government’s so-called first car scheme.

The scheme, one of the populist policies that won the Pheu Thai Party the 2011 general election, offers tax rebates of up to Bt100,000 for first-time vehicle buyers.

The waiver ended on December 31, leading to a surge in car sales before the deadline and "a new highest record in Thailand" for the year, Tanada said.

Toyota, the traditional market leader in Thailand, sold 516,086 vehicles in the country last year, a 78-per-cent annual increase, and exported 405,892 units from its production units in the kingdom, up 62 per cent.

Tanada predicted a slowdown in domestic sales in 2013 to about 1.2 million units.

-- The Nation 2013-01-22

[ratcatcher]

Terrific news this. More and more cars on Bangkok's roads, gridlock everywhere. Signs that Thailand is indeed becoming a first world country.

Soon Bangkok will be touting itself as the world's largest parking lot, but at least the cars have air-con and stereos.

Comfort while you wait.

[whybother]

Sales up 81% ... so without the tax breaks, not only will they drop back to previous levels, but they'll go further since many people bought their cars earlier than planned.

[Moruya]

Has the government decided to continue the scheme into 2013? I thought it had.

When sales scale back to "normal" levels, what will happen to the staffing levels?

[Locationthailand]

Wait until the repossessions start. As 1st car buyers they would be unlikely cash buyers and probably unlikely to have the means to support borrowings but could not resist the 'face' of having a red plate parked in the moo baan. Thus they would now have the issue of at least 4-5 years of payments they did not have previously and doubtful they are reliable money managers.

[madmitch]

Wait until the repossessions start. As 1st car buyers they would be unlikely cash buyers and probably unlikely to have the means to support borrowings but could not resist the 'face' of having a red plate parked in the moo baan. Thus they would now have the issue of at least 4-5 years of payments they did not have previously and doubtful they are reliable money managers.

I would guess that the local PowerBuy and Apple shops will be doing some good trade as the rebates are paid.

[noitom]

Debt them up. Burn that fuel brother. Thais just cruisin' along in the dark. Burnin' that fuel, runnin' up that debt. Boy oh boy these Thais, they sure know how to style that thing called life. Boy oh boy these Thais, they are something else.

[givenall]

Terrific news this. More and more cars on Bangkok's roads, gridlock everywhere. Signs that Thailand is indeed becoming a first world country.

Soon Bangkok will be touting itself as the world's largest parking lot, but at least the cars have air-con and stereos.

Comfort while you wait.

I don't call that comfort. Air con going and engine running while you go no where burning fuel. At least the Oil companies love this

[hgma]

car sales at a record high....so are the accidents and outright dangerous driving a lot (most) of the first time road users are causing.

Adhesive fast lane (slow)driving

average speed 90-100 they take a pedestrian speed as average

unpredictable behavior, causing a huge increase in accidents in my hometown. (car-motorcycles)

average ambulance and emergency sirene a year ago 1- 2 times a week around my house

Now once or twice a day!!!!!!!!!

be carefull out there......

[KarstenBoAndersen]

It is only for people pay tax !!!

So i think many had misunderstood it, as many had registered to buy, but they do not pay income tax !!

And if you pay a little tax, you can not even reduce the whole 100.000 !

My wife have reduction every month of more then 2000 Baht in tax, just for one of her life insurances !!

So she pay 94 Baht a month, what would a tax rebate be worth for her ??

ZERO !!

Just another goverment scam.

That means that every teacher would not get any rebate at all !

[magmur]

Debt them up. Burn that fuel brother. Thais just cruisin' along in the dark. Burnin' that fuel, runnin' up that debt. Boy oh boy these Thais, they sure know how to style that thing called life. Boy oh boy these Thais, they are something else.

Hi, what are you talking about these Thais, I recall the times in the mid80ies in germany when everyone who proved some income in the last 3 months was able to get loans for furniture, cars, holidays, in Spain people got 140% financed on highly overvalued properties, the average american today does not know how much their credit card debtbalance is as they pay a fix amount per month, as John Naisbit in 'Megatrends' wrote more than a decade ago, the asian countries will do exactly the same mistakes the western world showed them, but they will do it faster and deeper.

[Thai at Heart]

Debt them up. Burn that fuel brother. Thais just cruisin' along in the dark. Burnin' that fuel, runnin' up that debt. Boy oh boy these Thais, they sure know how to style that thing called life. Boy oh boy these Thais, they are something else.

Hi, what are you talking about these Thais, I recall the times in the mid80ies in germany when everyone who proved some income in the last 3 months was able to get loans for furniture, cars, holidays, in Spain people got 140% financed on highly overvalued properties, the average american today does not know how much their credit card debtbalance is as they pay a fix amount per month, as John Naisbit in 'Megatrends' wrote more than a decade ago, the asian countries will do exactly the same mistakes the western world showed them, but they will do it faster and deeper.

The rest of the world ironically followed the 97 crisis in Asia perfectly. It's just they had a fancy name for it. Loan securitisation and sub prime.

[rubl]

It is only for people pay tax !!!

So i think many had misunderstood it, as many had registered to buy, but they do not pay income tax !!

And if you pay a little tax, you can not even reduce the whole 100.000 !

My wife have reduction every month of more then 2000 Baht in tax, just for one of her life insurances !!

So she pay 94 Baht a month, what would a tax rebate be worth for her ??

ZERO !!

Just another goverment scam.

That means that every teacher would not get any rebate at all !

To be sure, the 'first-car' scheme is returning upto 100,000 in excise tax which you pay when buying a car. That has nothing to do with personal income tax.

[Wiggy]

Parking hub

[thomash]

Thai smog reaches record high!

Thai repossession of cars reach record high!

Accidents reach record high!

[rubl]

Thai smog reaches record high!

Thai repossession of cars reach record high!

Accidents reach record high!

That's the good news! Thailand, hub of ... ...

[hellodolly]

Terrific news this. More and more cars on Bangkok's roads, gridlock everywhere. Signs that Thailand is indeed becoming a first world country.

Soon Bangkok will be touting itself as the world's largest parking lot, but at least the cars have air-con and stereos.

Comfort while you wait.

Don't want to offend you but Bangkok is not the only town to be affected by traffic snarls.

We here in Chiang Mai are facing a growing congestion problem also part of it caused by people invading are ideal heaven coming from Bangkok to add to it. Now it is just heaven.

It is nice of you Bangokians to offer to help us get up to your standards but don't bother we will do it with out help.

Oops To Late

[NeverSure]

Thai smog reaches record high!

Thai repossession of cars reach record high!

Accidents reach record high!

Thai household debt reaches record high!

Someone is high on something!

In the US toward the beginning of this recession there was a program called "cash for clunkers" where the government subsidized high trade in values for old cars on new cars. IMHO it did some bad things. It encouraged people to buy a new car with big payments. The used cars literally had to be destroyed to create demand for new cars and a lot of otherwise decent affordable cars left the planet. It did indeed mostly push sales forward so afterwards sales dropped, putting dealers right back into slow sales.

This rush of new car purchases could for instance affect new home sales or other sales. For at least five years those who bought will be buried.

In all fairness, this rush to debt is not a lot different from the West.

[LindsayBKK]

This story and the post yesterday about worrying consumer debt are linked.

Prediction by Thai economists about a recession by 2017 looking on track

thanks to Pheu Thai.

Also there are signs that businesses are moving to neighboring countries like Vietnam

and Indonesia so they're maybe more product buying incentives in the future.

Edited January 22, 2013 by LindsayBKK

[rubl]

Terrific news this. More and more cars on Bangkok's roads, gridlock everywhere. Signs that Thailand is indeed becoming a first world country.

Soon Bangkok will be touting itself as the world's largest parking lot, but at least the cars have air-con and stereos.

Comfort while you wait.

Don't want to offend you but Bangkok is not the only town to be affected by traffic snarls.

We here in Chiang Mai are facing a growing congestion problem also part of it caused by people invading are ideal heaven coming from Bangkok to add to it. Now it is just heaven.

It is nice of you Bangokians to offer to help us get up to your standards but don't bother we will do it with out help.

Oops To Late

Now I understand the remark from a government official a while back about the need for a high-speed rail link between Bangkok and ChiangMai to help poor commuters

[Lammbock]

I do not see any Tax reduce on German Cars

[thaikahuna]

Terrific news this. More and more cars on Bangkok's roads, gridlock everywhere. Signs that Thailand is indeed becoming a first world country.

Soon Bangkok will be touting itself as the world's largest parking lot, but at least the cars have air-con and stereos.

Comfort while you wait.

You forgot to include the increase in vehicles operated by the repo man when they can make the notes...

[sunshine51]

Terrific news this. More and more cars on Bangkok's roads, gridlock everywhere. Signs that Thailand is indeed becoming a first world country.

Soon Bangkok will be touting itself as the world's largest parking lot, but at least the cars have air-con and stereos.

Comfort while you wait.

I wonder just how large the repossession rate will be also when the first time buyers

can't make the payments???

[rfukata]

a repossession vehicle would be a prime profit maker upon re-sell through auctioneer or bank

[ratcatcher]

Terrific news this. More and more cars on Bangkok's roads, gridlock everywhere. Signs that Thailand is indeed becoming a first world country.

Soon Bangkok will be touting itself as the world's largest parking lot, but at least the cars have air-con and stereos.

Comfort while you wait.

I don't call that comfort. Air con going and engine running while you go no where burning fuel. At least the Oil companies love this

Having read the headline, about reaching a record high, I felt the urge to use a dash of sarcasm or was I being facetious. Not sure.

[GentlemanJim]

This national rebate for cars is a LOT of money. I wonder if any of the cabinet has a science degree. or at least a modicum of mathematics to understand just what they have done. Reminds me of that marketing guy in the late 70's or early 80's who just about bankrupted 'Hoover", when everyone that spent 200 GBP on their products was offered a return ticket to the USA. I bought me and my girlfriend a hoover each, ....romantic ha ha, but we also claimed two return tickets to New York!! This first car scheme is going to really hurt the country in more ways than one.

[Asiantravel]

car sales at a record high....so are the accidents and outright dangerous driving a lot (most) of the first time road users are causing.

Adhesive fast lane (slow)driving

average speed 90-100 they take a pedestrian speed as average

unpredictable behavior, causing a huge increase in accidents in my hometown. (car-motorcycles)

average ambulance and emergency sirene a year ago 1- 2 times a week around my house

Now once or twice a day!!!!!!!!!

be carefull out there......

You're not wrong! You just get this horrible feeling they are not reading road conditions well ahead and planning their manoeuvres in advance. And as for people on their mobile phones at the same time I just simply don't believe they have had sufficient driver training to be able to accomplish both actions simultaneously and do so safely

[Asiantravel]

Thai smog reaches record high!

Thai repossession of cars reach record high!

Accidents reach record high!

Thai household debt reaches record high!

Someone is high on something!

In the US toward the beginning of this recession there was a program called "cash for clunkers" where the government subsidized high trade in values for old cars on new cars. IMHO it did some bad things. It encouraged people to buy a new car with big payments. The used cars literally had to be destroyed to create demand for new cars and a lot of otherwise decent affordable cars left the planet. It did indeed mostly push sales forward so afterwards sales dropped, putting dealers right back into slow sales.

This rush of new car purchases could for instance affect new home sales or other sales. For at least five years those who bought will be buried.

In all fairness, this rush to debt is not a lot different from the West.

Yes but the relationship between the monthly salary and the amount some of these people are paying as monthly car repayments compared to what we paid in the West from our salaries is like chalk and cheese?

In fact, the percentage some Thai's are paying for their status symbol ( and i dont care that ALL it is ) is even higher than most people paid in mortgage repayments in the West but where we had a reasonable prospect of at least some capital appreciation on the purchase of bricks and mortar.

But to have some people in Thailand paying 80% or even higher of their salary for a depreciating piece of metal is sheer lunacy

[magmur]

Debt them up. Burn that fuel brother. Thais just cruisin' along in the dark. Burnin' that fuel, runnin' up that debt. Boy oh boy these Thais, they sure know how to style that thing called life. Boy oh boy these Thais, they are something else.

Hi, what are you talking about these Thais, I recall the times in the mid80ies in germany when everyone who proved some income in the last 3 months was able to get loans for furniture, cars, holidays, in Spain people got 140% financed on highly overvalued properties, the average american today does not know how much their credit card debtbalance is as they pay a fix amount per month, as John Naisbit in 'Megatrends' wrote more than a decade ago, the asian countries will do exactly the same mistakes the western world showed them, but they will do it faster and deeper.

The rest of the world ironically followed the 97 crisis in Asia perfectly. It's just they had a fancy name for it. Loan securitisation and sub prime.

germany did the same 2009, everyone who was willing to scrap his car, old or not, was receiving up to 2500Euros for a new car = 100000B, the neighbouring countries in eastern Europe couldn't believe their luck to buy well maintained cars from scrapgrounds at bargain.

[crazygreg44]

Thai smog reaches record high!

Thai repossession of cars reach record high!

Accidents reach record high!

That's the good news! Thailand, hub of ... ...

...... the hub of repossesed cars !

wherever we go, wifey and me see used cars literally piling up at the dealers yards. With prices for a 5 year old, 50K km car just 100,000 less than a new one, I have always and still wondered WHO will buy these stockpiles of cars. And the sheer amount of them is surprising . . seems to grow at alarming speed. Well who cares . . . the old owner still owes the bank, the used car dealer has a cheap car sitting in the yard . . . who is winning in this game, can u explain?