Jump to content

Strong Baht To Wreak Havoc On Thai Auto Industry


Recommended Posts

Posted

Strong baht to wreak havoc on Thai auto industry
By English News

13641714319206.jpg

BANGKOK, March 25 – The rapid appreciation of the baht combined with a labour shortage may inflict a serious blow on Thailand's automotive industry as some companies mull relocating their production bases to Indonesia, according to a Thai industrialist.

Surapong Paisitpattanapong, spokesman of the automotive industry group of the Federation of Thai Industries (FTI), said the strengthened Thai currency has slashed the profit of auto manufacturers.

Thailand’s auto exports represent 40-50 per cent of all production with a targetted increase to 1.1 million units this year.

Auto manufacturers are keen on investing more in Indonesia given the island country’s policy to support eco car production, he said.

Regarding the government’s tax rebate for first-car buyers, Mr Surapong said some clients who paid booking fees to be entitled for the tax incentives have asked for a delay in receiving their reserved cars.

The delay in delivering the products to customers will contribute to overstock but it would not affect most companies’ manufacturing plans as it is less than 10 per cent, he said.

Some first-car buyers who made their bookings late last year have requested to postpone receiving the vehicles due to financial constraints.

Mr Surapong said this year’s total auto production is projected at 2.7-2.8 million units but it may be reduced to 2.55 million units if more than 10 per cent of first-car buyers fail to abide by their booking pledges. (MCOT online news)

tnalogo.jpg
-- TNA 2013-03-25

  • Replies 78
  • Created
  • Last Reply

Top Posters In This Topic

Posted

All thai industries that focus on export must somehow suffer from this. the Euro crises makes that the Thai Baht appears even stronger.

still good news for those who import or go on holidays abroad.

worries in the auto industry? In some countries that makes things moving.

maybe time to book are trip now and stock up on imported goods as long that Baht is that strong like atm.

Posted

This is also going to have havoc on the tourist industry and the foreigners who have families here... It almost seem like government officials and ministers have some alternative motive in seeing the Baht getting stronger... Very Crazy... Could this be a new version of corruption?

Would you assume corruption if the currency in your country becomes weaker and weaker and exporters happier and happier.
Posted

This is also going to have havoc on the tourist industry and the foreigners who have families here... It almost seem like government officials and ministers have some alternative motive in seeing the Baht getting stronger... Very Crazy... Could this be a new version of corruption?

I'm no economist so welcome advice on this subject. All I know is that my pensions arriving from overseas have dropped by between B14,000 - 16,000 in the last 10 years. Iis there a chance that some of the powers that be are so proud of the baht's strength that they ignore their own exporters. I would also suggest that those at the top of the shop don't have to worry about money and that which they declare is, well, only the tip of a cash iceberg

  • Like 1
Posted

All thai industries that focus on export must somehow suffer from this. the Euro crises makes that the Thai Baht appears even stronger.

still good news for those who import or go on holidays abroad.

worries in the auto industry? In some countries that makes things moving.

maybe time to book are trip now and stock up on imported goods as long that Baht is that strong like atm.

Holidays abroad? I wonder how many working class Thais do that. They are lucky to get any holiday.
the urban middle class can. you don't have to be super hi-so or from a rich daddy family to be able to afford that. if you have studied and good job you are fine.

agreed, for the working class in Thailand it is different. but how is it for the working class in other countries, lets say in countries where they get paid in euros or pounds. i heard some of them complained that they cannot afford holidays.

Posted (edited)

EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper.

So the EX-port business is gonna be EX-terminated

EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand

Edited by metisdead
: Bold font removed.
  • Like 2
Posted

RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree.

Gotta love (trying) to buy a car here.

Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash".

"Sorry, can not, you wait 8 to 9 months".

Told wife every new car stacked out back was spoken for.

I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right.

Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?".

"1m Baht".

<deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response.

"But can not, somebody sign already, waiting for bank loan".

Hmm, bank loan for an 8 year old car, this sounds like a real winner".

"OK then, if he doesn't get the loan, I'll take it. Here's my number, call me".

She does not take my number, smiles, "Can not. Somebody else waiting".

Posted

RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree.

Gotta love (trying) to buy a car here.

Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash".

"Sorry, can not, you wait 8 to 9 months".

Told wife every new car stacked out back was spoken for.

I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right.

Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?".

"1m Baht".

<deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response.

"But can not, somebody sign already, waiting for bank loan".

Hmm, bank loan for an 8 year old car, this sounds like a real winner".

"OK then, if he doesn't get the loan, I'll take it. Here's my number, call me".

She does not take my number, smiles, "Can not. Somebody else waiting".

You can't compare the used car market back home to what it is here. The second hand value is kept high due to the exorbitant duty on new cars, be they imported or produced here. The BMW dealer at Rama4/Suk24 had 10 year old 7 series cars for around £30,000, a car that'd cost no more than £5,000 in the UK.

  • Like 1
Posted

EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper.

So the EX-port business is gonna be EX-terminated

EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand

What has this guy anything to do the the strong baht ....you have a phobia for him....read some economics...blink.png

Posted

EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper.

So the EX-port business is gonna be EX-terminated

EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand

interesting.

assumed that would be true.

what kind of commodities they do import? and do you think they are not involved in any export business?

Posted

RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree.

Gotta love (trying) to buy a car here.

Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash".

"Sorry, can not, you wait 8 to 9 months".

Told wife every new car stacked out back was spoken for.

I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right.

Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?".

"1m Baht".

<deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response.

"But can not, somebody sign already, waiting for bank loan".

Hmm, bank loan for an 8 year old car, this sounds like a real winner".

"OK then, if he doesn't get the loan, I'll take it. Here's my number, call me".

She does not take my number, smiles, "Can not. Somebody else waiting".

You can't compare the used car market back home to what it is here. The second hand value is kept high due to the exorbitant duty on new cars, be they imported or produced here. The BMW dealer at Rama4/Suk24 had 10 year old 7 series cars for around £30,000, a car that'd cost no more than £5,000 in the UK.

I'm not. High also due to the long wait for a new one, so that 8 year old SUV can and does sell for nearly the cost of new, because you can drive it off the lot (maybe). I'm not confused by it, just amused.

  • Like 1
Posted

The Japan Automobile Manufacturers Association describes the quality of Thaimade automotive parts as the highest of any Asean nation. The sector continues to offer ample investment opportunity, as the domestic market and local manufacturers have a parts and components import requirement totaling 250 billion baht each year

http://www.thaiautoparts.or.th/download/Article%205.pdf

So this should have all got a bit cheaper with the baht getting stronger, no?

Posted

EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper.

So the EX-port business is gonna be EX-terminated

EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand

Add more water to it.cheesy.gifcheesy.gifcheesy.gif

Posted

EX-Fugitive politician, residing in Dubai EX-cellently EX-ploits the country of Thailand, and with the Baht getting stronger, of course his Pheu Thai henchmen want to IM-port, aka reep, reep, and reep, the foreign goods which from their side aka receiving end are getting cheaper.

So the EX-port business is gonna be EX-terminated

EX-port=doomed to EX-pire thanks to the EX-fugitive and his henchmen from Pheu Thai who are EX-ploiting the ordinary people and international businesses in Thailand

What has this guy anything to do the the strong baht ....you have a phobia for him....read some economics...blink.png

Haha right, some people blame the EX-fugitive for everything that goes wrong in this country. Seems to have a huge back!!

  • Like 2
Posted (edited)

The Thai auto industry is mainly an assembly operation with most major components imported, the high baht would make those imports cheaper however, the exported vehicle would be more expensive. Since its mainly an assembly industry it is heavily reliant on semi skilled labourers, and as such is impacted more by the rise in the minimum wage and the labour shortage. This will see a migration of this industry to a more conducive environment once the honeymoon period of the first car buyers scheme is over.

In addition is isn't helpful to have Yingluck exacerbating the strong baht by trolling around the world encouraging more foreign investment.

Edited by waza
Posted

RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree.

Gotta love (trying) to buy a car here.

Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash".

"Sorry, can not, you wait 8 to 9 months".

Told wife every new car stacked out back was spoken for.

I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right.

Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?".

"1m Baht".

<deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response.

"But can not, somebody sign already, waiting for bank loan".

Hmm, bank loan for an 8 year old car, this sounds like a real winner".

"OK then, if he doesn't get the loan, I'll take it. Here's my number, call me".

She does not take my number, smiles, "Can not. Somebody else waiting".

You can't compare the used car market back home to what it is here. The second hand value is kept high due to the exorbitant duty on new cars, be they imported or produced here. The BMW dealer at Rama4/Suk24 had 10 year old 7 series cars for around £30,000, a car that'd cost no more than £5,000 in the UK.

I wonder if there is anyway I can sneak my beamer in from the UK?
Posted

Let's see. If I was a hi-so Thai with truckloads of baht, would I want them high or low?

And in my normal don't-give-a-damn about anyone else or anything but the present, what action could I be expected to take?

Posted

RE: new car buyer "issue" and the tax rebate, sometimes the TV fortune tellers are spot on, or at least hit the tree.

Gotta love (trying) to buy a car here.

Stopped at Toyota last week, told sales person "I'll have "that" Fortuner right there, 1.2/3m Baht, I'll pay cash".

"Sorry, can not, you wait 8 to 9 months".

Told wife every new car stacked out back was spoken for.

I could have the Camry Hybrid on display.... 1.8m.... over 60k USD. Yeah, right.

Walked over to second hand, "I want "that" 2008 Fortuner right there. How mutt?".

"1m Baht".

<deleted>!, "Really? I can buy a new one for 300k more". Confused look, no response.

"But can not, somebody sign already, waiting for bank loan".

Hmm, bank loan for an 8 year old car, this sounds like a real winner".

"OK then, if he doesn't get the loan, I'll take it. Here's my number, call me".

She does not take my number, smiles, "Can not. Somebody else waiting".

You can't compare the used car market back home to what it is here. The second hand value is kept high due to the exorbitant duty on new cars, be they imported or produced here. The BMW dealer at Rama4/Suk24 had 10 year old 7 series cars for around £30,000, a car that'd cost no more than £5,000 in the UK.

I wonder if there is anyway I can sneak my beamer in from the UK?

Johnny Cash sang about that.

On topic, how many people, Thais, do you think are buying dollars at the moment ? Long term hold then buy back Baht later when it all settles down.

Posted

The spending power is shifting away from the West and increasing in the East, especially in emerging economies like Thailand.

Those hoping for a reversal are going to end up disappointed.

  • Like 1
Posted

The Thai auto industry is mainly an assembly operation with most major components imported, the high baht would make those imports cheaper however, the exported vehicle would be more expensive. Since its mainly an assembly industry it is heavily reliant on semi skilled labourers, and as such is impacted more by the rise in the minimum wage and the labour shortage. This will see a migration of this industry to a more conducive environment once the honeymoon period of the first car buyers scheme is over.

In addition is isn't helpful to have Yingluck exacerbating the strong baht by trolling around the world encouraging more foreign investment.

You are very wrong. While some auto manufacturers do have a CKD line, the majority of the Japanese automakers manufacture the parts, or have them manufactured locally using either Japanese sub-contractors for the more critical parts (intricate molding and casting molds and dies etc) or local suppliers for less critical parts (pressed steel parts etc)

Posted (edited)

The Thai auto industry is mainly an assembly operation with most major components imported, the high baht would make those imports cheaper however, the exported vehicle would be more expensive. Since its mainly an assembly industry it is heavily reliant on semi skilled labourers, and as such is impacted more by the rise in the minimum wage and the labour shortage. This will see a migration of this industry to a more conducive environment once the honeymoon period of the first car buyers scheme is over.

In addition is isn't helpful to have Yingluck exacerbating the strong baht by trolling around the world encouraging more foreign investment.

You are very wrong. While some auto manufacturers do have a CKD line, the majority of the Japanese automakers manufacture the parts, or have them manufactured locally using either Japanese sub-contractors for the more critical parts (intricate molding and casting molds and dies etc) or local suppliers for less critical parts (pressed steel parts etc)

But there is still quite a large imported input, but as for exact percentages in terms of value, anyone know?

Thailand’s imports of steel, especially hot-rolled steel, have increased greatly on
the back of higher consumption.Thailand’s apparent steel use in 2012 increased by 13% compared to
2011. Demand for flat steel, used in manufacturing industries, expanded by14%, while consumption of long steel
products, which are used in construction, increased by around 12%. Total steel imports increased by 25%, with
highest 35% surge in hot-rolledsheet/ plate, which is one kind of flat steel (Picture 1). Increasing imports have
crowded out domestic production, particularly flat steel production which declined by 10% from 2011. The highest
proportionof Thailand’s steel imports come from Japan, which claimed 30% of total steel imports, followed by
China, which has 20% share. Most of the steel imported from Japan is high-quality and high-strength steel, used
in industries suchas automotives that Thai producers are unable to manufacture these kinds of steel due to lack
of technology

http://www.scbeic.com/stocks/extra/4442_20130205102337.pdf

Edited by Thai at Heart

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.



  • Topics

  • Latest posts...

    1. 32

      THIS is how Farang keep SUPER-CLEAN in Thailand: Being Farang, I use "SuperClean".

    2. 10

      Thailand Live Saturday 16 November 2024

    3. 6

      Thailand Looks to Bolster Suvarnabhumi Airport as Southeast Asia's Top Transit Hub

    4. 0

      Brutal Murder in Bueng Kan: 43-Year-Old Man Found Stabbed in Rice Field

    5. 32

      THIS is how Farang keep SUPER-CLEAN in Thailand: Being Farang, I use "SuperClean".

    6. 0

      Police arrest Sisaket man for firearms and drugs possession

    7. 78

      Official: Trump Nominates RFK Jr. for Health Secretary

    8. 159

      Thailand goes all in on The Homosexual Movement

  • Popular in The Pub


×
×
  • Create New...