Strong Baht To Wreak Havoc On Thai Auto Industry

[julemanden]

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".

Have you ever tried bahtsold.com ? there you can get a Fortuner newer and cheaper

[aguy30]

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.

A member for 3 days and already more than150 useless posts. Great job ZhouZhou!

[MaxPag]

Well, well, I guess it might be the right time to buy some Baht for vacation before the currency get too strong...

[rfukata]

And what percentage of a Japanese manufactured car, in terms of value is still imported????

Steel being a rather big component.

I would think the brains would be a highly contributed part as well as the steel.

[LennyW]

Wonder if Izuzo still plan to open a new plant here in the near future ??

Isuzu's new Gateway Plant in Chacheonsao opened in October last year, so their delivery times are not too bad at the moment.

[Billmont]

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

You have a serious problem. Have you stopped taking your tablets?

[Robby nz]

What must the outlook for car sales in this country be for next year or few without the Govt 100kb thing for small cars?

Read somewhere that there were 800 thousand cars bought under this.

Surely those who bought under this scheme wont be buying next year or the next for that matter.

Will the tax rebate for first-car buyers be continued on? If not that will also make a big dent in car sales into the future.

Even if it is then those "first car buyers" who have bought this year are unlikely to buy again for some years to come.

It is also very likely that as first car buyers taking advantage of a discount the majority of them would not have been able to buy a car without it and would have had to borrowed money to make the purchase.

Leaving them in debt, or bigger debt which ever the case may be, and therefor unlikely to be able to borrow more for another car till at least a fair bit of that debt is paid off.

All these things point to a lean time for vehicle sales in Thailand for the next couple of years.

[Thai at Heart]

And what percentage of a Japanese manufactured car, in terms of value is still imported????

Steel being a rather big component.

I would think the brains would be a highly contributed part as well as the steel.

Exactly the point. I am not so sure that the exchange rate jumping had such a huge effect on the fob price

[crazykopite]

The big bang is just around the corner the only people getting rich are the wealthy who will be sending there money abroad One morning the average Thai will wake up and realize that they cannot afford to put gas in there government assisted car, does not have the money to pay the bank loan for the house, can no longer afford the ubc or appli i phone. All foriegn investment moving out to Countries that will welcome back with open arms no more tourists to rip off Yes the Very big bvang is just around the corner and it will be back to picking coconuts for the majority.

[chooka]

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".

1.8m baht for the Camry Hybrid seems a little high. My father just purchased one (on road cost inc) for 32,900 AUD in Australia about 990K baht about half the price as in Thailand. The manufacturing costs in Australia are far greater than Thailand. If that price is right then Toyota must be making huge profits.

My wife did sell her 10 yr old toyota Soluna in Chiangmai for 190K baht (6.3K AUD) in Australia it would have fetched around 300 dollars (9K baht) and I thought she was stealing money from the buyer.

Don't understand why cars are so expensive to buy in Thailand would be easier and quicker to pop over to Australia buy the identical vehicle and import it.

Edited March 25, 2013 by chooka

[howzat]

Can somebody please explain to me why for example the price of imported cars does not go down proportionately or imports generally don't go down.

My local supermarket is not reducing prices on those imports like branston pickle and stilton that makes our miserable lives tolerable.

Somebody must be getting very fat but not me on pickle or stilton.

[Mosha]

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".

1.8m baht for the Camry Hybrid seems a little high. My father just purchased one (on road cost inc) for 32,900 AUD in Australia about 990K baht about half the price as in Thailand. The manufacturing costs in Australia are far greater than Thailand. If that price is right then Toyota must be making huge profits.

My wife did sell her 10 yr old toyota Soluna in Chiangmai for 190K baht (6.3K AUD) in Australia it would have fetched around 300 dollars (9K baht) and I thought she was stealing money from the buyer.

Don't understand why cars are so expensive to buy in Thailand would be easier and quicker to pop over to Australia buy the identical vehicle and import it.

Until you get the import tax bill.

[jmccarty]

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?

If you figure out how, please let me know! I have an M5 in Singapore which I can not sell due to that government changing loan regulations and making any car over $50k out of reach to most people. My M5 was worth Approx. $180k there, nobody has $90k for the downpayment now needed so my car sits there while I work here in Thailand driving a 10 year old box of !@*t unable to import my own car!

[drdoom6996]

Thai ANY-Industry. Strong Baht is bad for business. Unless......................................

[waza]

What must the outlook for car sales in this country be for next year or few without the Govt 100kb thing for small cars?

Read somewhere that there were 800 thousand cars bought under this.

Surely those who bought under this scheme wont be buying next year or the next for that matter.

Will the tax rebate for first-car buyers be continued on? If not that will also make a big dent in car sales into the future.

Even if it is then those "first car buyers" who have bought this year are unlikely to buy again for some years to come.

It is also very likely that as first car buyers taking advantage of a discount the majority of them would not have been able to buy a car without it and would have had to borrowed money to make the purchase.

Leaving them in debt, or bigger debt which ever the case may be, and therefor unlikely to be able to borrow more for another car till at least a fair bit of that debt is paid off.

All these things point to a lean time for vehicle sales in Thailand for the next couple of years.

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)

Sounds like the rot has started already

[spidermike007]

I think it is safe to say ignorance plays a great role in the lack of a coherent policy with regard to the baht. Not sure how many qualified people there are in the finance ministry, nor on the banking commissions. If they are appointed with the same level of cronyism as the other ministers, than the answer is very few indeed. Let us hope finance is one of the only areas of government here, where expertise in the specialized area one is appointed, is considered important, and necessary.

[Locationthailand]

Boo hoo Yingluck. Populist policies? Increasing strength of Thai Baht due to other currencies weakening, subsidised first car ownership car sales, 300 Baht minimum wage, all adding up to a huge fart that could actually become the

[HalibutJones]

Regarding the import of own cars from abroad, the way I understand it is the duty is on a sliding scale over 10 years of ownership. For instance, if you have just bought a car in, say, the UK, you would pay 100% import duty when bringing the car to Thailand. If you've owned the car for 5 years, you would pay 50% duty, owned for 9 years then you pay 10%, and sole owner for 10 years or more you can import your car without paying duty.

Not saying this is gospel, just the information I was given.

[belg]

after the manage to cut down the rice producing country in the world, big efforts now to take down other big exports like car manufacturing... next are electronics

and in the last phase: the removal of all those (us) unwanted farangs from the country

[whiteman]

Regarding the import of own cars from abroad, the way I understand it is the duty is on a sliding scale over 10 years of ownership. For instance, if you have just bought a car in, say, the UK, you would pay 100% import duty when bringing the car to Thailand. If you've owned the car for 5 years, you would pay 50% duty, owned for 9 years then you pay 10%, and sole owner for 10 years or more you can import your car without paying duty.

Not saying this is gospel, just the information I was given.

Yes bring it over after ten years and see the rust appear after ten years on the salt roads of the uk. I will still buy new here and just did took 5 months to arrive but well worth it

[watcharacters]

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.

How much does that middle class earn to reach that status level?

Just curious?

[dominique355]

I feel really sorry for the poor Thai car manufacturer. Imagine that they have to reduce their insane profit margines just a little, that is certainly the end of the world as we know it.

Let's not foget that cars manufactured or assemblied in Thailand cost more than double (more than 100% MORE) than the identical car built in USA and sold in USA. And US autoworkers are among the best pais in the world!

So, no, I am not really sorry for these guys.

[rbrooks]

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".

They would never make it in car sales in the western world.

[lemoncake]

Auto Industry is not alone, electronics are in the same boat.

One question still to ask is the local demand high enough for them to stay? or with ASEAN coming, moving would be a more viable move(as moving does take time)

Also who would be moving Ford has just invested few billion and looking to invest little more, so would it be the brands who do not do as well locally? or all of them?

How would that affect the price of cars locally?

I for one, would suggest(not that anyone listens) to introduce same tax across the board, including imported cars, but have a luxury tax imposed on cars worth say 2 000 000 baht.

This move may encourage car makers to stay, because they could introduce other models to the local market and make up the difference in losses they may suffer

[Thai at Heart]

The car import tax here is an iniquity.

[khaowong1]

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.

Same here in the US.. I'm driving a Ford pickup that in Thailand would cost approx. 600,000 baht, here I paid $5000 for it.

[Postmaster]

Who would want to start a business in Indonesia and live there anyway. It rains every day. Its the last time I go there except for a couple of months of the year. Additionally although the Indonesians appear to want business they make it very complicated (and expensive) to come and go from there !

[jacko45k]

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.

Same here in the US.. I'm driving a Ford pickup that in Thailand would cost approx. 600,000 baht, here I paid $5000 for it.

The Havoc doesn't seem to include bad business. I have been told the waiting time for a Ford pick-up I fancied is a year.

They are made not far from me in Rayong... wonder where all the current production is going? The local, buoyant market?

[kimamey]

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

You have a serious problem. Have you stopped taking your tablets?

Perhaps he's started taking some tablets.

[Billmont]

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

You have a serious problem. Have you stopped taking your tablets?

Perhaps he's started taking some tablets.

Very good!