First-Car Buyers Reversals May Affect Thai Auto Industry

[webfact]

First-car buyers reversals may affect Thai auto industry
By Digital Media



BANGKOK, Mar 26 – A slowdown in auto deliveries to first-car buyers may have a negative impact on Thailand's auto industry, which has targetted manufacturing at least 2.6 million units this year, a Thai industrialist said today.

Surapong Paisitpattanapong, spokesman of the auto industry group of the Federation of Thai Industries (FTI), said 600,000 cars have yet to be received by customers who paid booking fees last year so as to be entitled to the government’s tax rebate for first-car buyers. The policy expired on Dec 31.

If purchase cancellations exceed 20-30 per cent, the Thai auto industry will not achieve the total production volume of 2.6-2.7 million units it had expected for this year, he said.

“We need two more months before we can evaluate the situation. Bookings in the upcoming Bangkok International Motor Show will be one of the crucial factors,” said Mr Surapong, who painted a positive outlook for the Thai auto market this year with eco cars and pickup trucks continuing to take the sales lead.

He said this year’s auto exports will increase to 1.1 million units while domestic sales will expand from 1.43 million units last year to 1.5 million units.

Adisak Rohitasune, senior vice president of Honda Automobile Thailand, predicted a five per cent growth of auto sales volume in Thailand this year, or 1.4 million units.

The government’s first-car policy has greatly contributed to the growth of auto sales in Thailand last year, he said.

He pointed out that the state’s Bt2 trillion investment in the kingdom’s infrastructure will be a boon to the auto industry, as more capital will be injected into the economic system and contribute to the public’s higher purchasing power.

Mr Adisak stood firm that Honda will not relocate its plants from Thailand to Indonesia, and that Thailand will be the company’s largest production base in Southeast Asia.

He said the appreciating Thai currency has a negative impact on auto exports, and that the appropriate exchange rate should be around Bt30 against the US dollar. (MCOT online news)


-- TNA 2013-03-26

[JeremyBowskill]

Did think about signing up for this thing myself, but as it would have had to been in my Mrs's name seemed like too big a risk as the house already is, and if she boots me out would like to be left with at least a car to sleep in.

Paid cash in the end and didn't bother about getting the tax back, at least I will always have a car to sleep in.

Edited March 26, 2013 by JeremyBowskill

[Pimay1]

Did think about signing up for this thing myself, but as it would have had to been in my Mrs's name seemed like too big a risk as the house already is, and if she boots me out would like to be left with at least a car to sleep in.

Wise move old boy.

[keemapoot]

A lot of Thais "scammed" the first time buyers program, and may be backing out now. For example, regular family car owners wanted a new car, but knew they could not buy one under the scheme, so they put it in their son or daughter or niece, whatever name, and thought they would laugh all the way to the bank.

Reality probably set in that said nephew was a loser and couldn't qualify under the loan even with multiple co-signers, etc., or for other reasons, even buyer's remorse (which can cause a lot of cancelled car orders when the buyer has a lot of time to think it over - as in this program) for long lead times for the most popular models,etc..

Therefore, I think it's evident that there wasn't a huge pent-up demand by first time buyers, it was something else....

[rubl]

He pointed out that the state’s Bt2 trillion investment in the kingdom’s infrastructure will be a boon to the auto industry, as more capital will be injected into the economic system and contribute to the public’s higher purchasing power.

More than half of the 2.2 trillion will be for 'rail' and that's a boon for the auto industry? Maybe the gentleman simply pointed to the Thai 30% rule

[JetsetBkk]

Did think about signing up for this thing myself, but as it would have had to been in my Mrs's name seemed like too big a risk as the house already is, and if she boots me out would like to be left with at least a car to sleep in.

Paid cash in the end and didn't bother about getting the tax back, at least I will always have a car to sleep in.

I guess you're a "glass half empty" sort of guy?

[Felt 35]

The government’s first-car policy has greatly contributed to the growth of auto sales in Thailand last year

and to this: Roads in Thailand worlds sixth most dangerous which cost the country manyfold the income from autosales annually.

http://www.nationmultimedia.com/national/Roads-in-Thailand-the-sixth-most-dangerous-30202575.html

Edited March 26, 2013 by Felt 35

[MaxLee]

First the Rice SCAM, and now the First Car buying SCAM, this is what comes into my mind, when the ordinary and poor taxpayers cannot pay back their loans:

That's what Bangkok will become if people ditch their second hand cars or resell or whatever,

http://4.bp.blogspot.com/_kxPG6y8Qctk/SrORoJ2qGSI/AAAAAAAAMKs/IuqXCvPB_FI/s1600-h/Object+Graveyards.jpg

because people can't handle their yearly car maintenance due to their low salaries

Edited March 26, 2013 by MaxLee

[UbonOz]

Did think about signing up for this thing myself, but as it would have had to been in my Mrs's name seemed like too big a risk as the house already is, and if she boots me out would like to be left with at least a car to sleep in.

Paid cash in the end and didn't bother about getting the tax back, at least I will always have a car to sleep in.

I guess you're a "glass half empty" sort of guy?

We are only good for a maximum of one year, until you renew your visa extension, we can be booted out anytime, not necessarily by the Mrs.

[Pimay1]

Did think about signing up for this thing myself, but as it would have had to been in my Mrs's name seemed like too big a risk as the house already is, and if she boots me out would like to be left with at least a car to sleep in.

Paid cash in the end and didn't bother about getting the tax back, at least I will always have a car to sleep in.

I guess you're a "glass half empty" sort of guy?

I have seen the half empty or half full statement all my life. I disagree with both. The glass is simply too large.

[BlackJack]

more cars

more on the roads that havent got a clue on how to drive!

[anselpixel]

A lot of Thais "scammed" the first time buyers program, and may be backing out now. For example, regular family car owners wanted a new car, but knew they could not buy one under the scheme, so they put it in their son or daughter or niece, whatever name, and thought they would laugh all the way to the bank.

Reality probably set in that said nephew was a loser and couldn't qualify under the loan even with multiple co-signers, etc., or for other reasons, even buyer's remorse (which can cause a lot of cancelled car orders when the buyer has a lot of time to think it over - as in this program) for long lead times for the most popular models,etc..

Therefore, I think it's evident that there wasn't a huge pent-up demand by first time buyers, it was something else....

Saw that play out at least once. I don't know how many families did it, but the only one I know well certainly did.

[Locationthailand]

Wish everyone would get back on topic... Reality is deamnd outstripped supply. Now with orders cancelling just another egg on face for the populist policies brokers. Orders cancel, money spent on increased manufacture, then failed demand thus jobs lost. Dear me... (sigh) bummer.

[Ricardo]

Hum, offer a tax-rebate last year, which pulls purchases forward, and it might be followed by a decline in sales, the following year.

Whoever would have thunk it ?

[tingtongfarang]

i know of 3 thais who had ordered cars on this first time car buyers scam through family members, The fact that none of them have a licence to drive does,nt seem to concern them.

[culicine]

Did think about signing up for this thing myself, but as it would have had to been in my Mrs's name seemed like too big a risk as the house already is, and if she boots me out would like to be left with at least a car to sleep in.

Paid cash in the end and didn't bother about getting the tax back, at least I will always have a car to sleep in.

We are only good for a maximum of one year, until you renew your visa extension, we can be booted out anytime, not necessarily by the Mrs.

Show me ANYONE who has been asked to leave Thailand for no good reason. Edited March 26, 2013 by culicine

[gabruce]

Did think about signing up for this thing myself, but as it would have had to been in my Mrs's name seemed like too big a risk as the house already is, and if she boots me out would like to be left with at least a car to sleep in.

Paid cash in the end and didn't bother about getting the tax back, at least I will always have a car to sleep in.

We are only good for a maximum of one year, until you renew your visa extension, we can be booted out anytime, not necessarily by the Mrs.

Show me ANYONE who has been asked to leave Thailand for no good reason.

Can't be done. They aren't here any more!

[jackspratt]

First the Rice SCAM, and now the First Car buying SCAM, this is what comes into my mind, when the ordinary and poor taxpayers cannot pay back their loans:

Can you please explain how the car scheme is a scam?

[tragickingdom]

What about free bicycles and the scrapping of the absurd fuel subsidies. If the fuel subsidy was indeed to help poor people it would have been given on Unleaded 91 petrol that is what goes into motorcycles and small cars, Diesel is just used for century old 6 and 10 wheelers which should have been destroyed 30 years ago. Loan subsidies, car subsidies, petrol subsidies, why not a subsidy on eating more rice and a fine on eating french fries? It surely helps the poor.

[Para]

Wow never say this coming in a million years.....

Another well thought through plan.

[shrimpythailand]

and the old trick from one of the bronx DeNiro movies test:

open the door for your woman and let her get in the car - close her door.... slowly walk around the car to your side and see if she unlocks the door for you before you have to put the key in the door.... now THAT is the test to see if she really loves you or not....was great forget which movie A Bronx tale maybe?? anyway back to topic...1.2 million cars maybe up to 2 million I heard....wait till the payments have to be made..and gas paid for ... oh and the 2 year drive to the malls now on saturday cause there is 800,000+/- more cars on bangkok streets 5 5 5 I live and work out in Rangsit area and the volume of traffic is way up some days....and the t
TV article today that the gov is out of rebate money....also a thai friend told me if the car gets stolen in 5 years you have to pay BACK the 100,000 bt.....anyway - any people that have money certainly come out ok... son or daughter gets a new car.... just wait till the payments start kicking in.... there are tons of vehicles already sitting second hand out in the burb's car lots that are low miles and the owner just couldn't pay the monthly payments...will be a lot more by the end of the year with the rebate scam....ar ar ar how to bankrupt a country and still get re-elected should be Badluck's motto....

I don't understand why people are beating on this guy. In Canada assets are split equally when a marriage ends, it is understood that both partners contributed to the accumulated wealth. In Thailand your wife gets it all, nothing wrong with having something in your name. I love my wife, we have been together for 7 years, I hope we're together for many more, but when I buy a new car it's going in my name. I have a lease on our home to protect me, she owns the house, 2 parcels of land and our current vehicle. When a woman, Thai or not, objects to you having something of your own, you have a problem. I think a good test is is to suggest that instead of buying a house in her name, that you buy a condo in your name and tell her to trust that you will leave it to her in the event of your demise, see how much she trusts you.

[mancub]

"
He pointed out that the state’s Bt2 trillion investment in the kingdom’s infrastructure will be a boon to the auto industry, as more capital will be injected into the economic system and contribute to the public’s higher purchasing power."

Err how exactly ? Unless more tax relief schemes are in line , the only way the general public will have more purchasing power ,is by taking on .greater personal credit debt .

Maybe he expects it to create such a further economic miracle that everyone ( not just the chosen ones) will benefit from ever increasing salaries ?

[Shurup]

Show me ANYONE who has been asked to leave Thailand for no good reason.

A guy's life choices aren't the topic...

[song0674]

and the old trick from one of the bronx DeNiro movies test:

open the door for your woman and let her get in the car - close her door.... slowly walk around the car to your side and see if she unlocks the door for you before you have to put the key in the door.... now THAT is the test to see if she really loves you or not....was great forget which movie A Bronx tale maybe?? anyway back to topic...1.2 million cars maybe up to 2 million I heard....wait till the payments have to be made..and gas paid for ... oh and the 2 year drive to the malls now on saturday cause there is 800,000+/- more cars on bangkok streets 5 5 5 I live and work out in Rangsit area and the volume of traffic is way up some days....and the t

TV article today that the gov is out of rebate money....also a thai friend told me if the car gets stolen in 5 years you have to pay BACK the 100,000 bt.....anyway - any people that have money certainly come out ok... son or daughter gets a new car.... just wait till the payments start kicking in.... there are tons of vehicles already sitting second hand out in the burb's car lots that are low miles and the owner just couldn't pay the monthly payments...will be a lot more by the end of the year with the rebate scam....ar ar ar how to bankrupt a country and still get re-elected should be Badluck's motto....

I don't understand why people are beating on this guy. In Canada assets are split equally when a marriage ends, it is understood that both partners contributed to the accumulated wealth. In Thailand your wife gets it all, nothing wrong with having something in your name. I love my wife, we have been together for 7 years, I hope we're together for many more, but when I buy a new car it's going in my name. I have a lease on our home to protect me, she owns the house, 2 parcels of land and our current vehicle. When a woman, Thai or not, objects to you having something of your own, you have a problem. I think a good test is is to suggest that instead of buying a house in her name, that you buy a condo in your name and tell her to trust that you will leave it to her in the event of your demise, see how much she trusts you.

the Bronx tale/DeNiro test doesn't work anymore.

This was back before there was central locking remember. So each door had to be unlocked individually. These days with keyless entry, one push of the car key remote open all doors. So if you open her door for her and walk around to your/driver's door - it's already unlock. Its pointless for her unlock and already unlocked door!

[Pimay1]

and the old trick from one of the bronx DeNiro movies test:

open the door for your woman and let her get in the car - close her door.... slowly walk around the car to your side and see if she unlocks the door for you before you have to put the key in the door.... now THAT is the test to see if she really loves you or not....was great forget which movie A Bronx tale maybe?? anyway back to topic...1.2 million cars maybe up to 2 million I heard....wait till the payments have to be made..and gas paid for ... oh and the 2 year drive to the malls now on saturday cause there is 800,000+/- more cars on bangkok streets 5 5 5 I live and work out in Rangsit area and the volume of traffic is way up some days....and the t

TV article today that the gov is out of rebate money....also a thai friend told me if the car gets stolen in 5 years you have to pay BACK the 100,000 bt.....anyway - any people that have money certainly come out ok... son or daughter gets a new car.... just wait till the payments start kicking in.... there are tons of vehicles already sitting second hand out in the burb's car lots that are low miles and the owner just couldn't pay the monthly payments...will be a lot more by the end of the year with the rebate scam....ar ar ar how to bankrupt a country and still get re-elected should be Badluck's motto....

I don't understand why people are beating on this guy. In Canada assets are split equally when a marriage ends, it is understood that both partners contributed to the accumulated wealth. In Thailand your wife gets it all, nothing wrong with having something in your name. I love my wife, we have been together for 7 years, I hope we're together for many more, but when I buy a new car it's going in my name. I have a lease on our home to protect me, she owns the house, 2 parcels of land and our current vehicle. When a woman, Thai or not, objects to you having something of your own, you have a problem. I think a good test is is to suggest that instead of buying a house in her name, that you buy a condo in your name and tell her to trust that you will leave it to her in the event of your demise, see how much she trusts you.

the Bronx tale/DeNiro test doesn't work anymore.

This was back before there was central locking remember. So each door had to be unlocked individually. These days with keyless entry, one push of the car key remote open all doors. So if you open her door for her and walk around to your/driver's door - it's already unlock. Its pointless for her unlock and already unlocked door!

I think a good test is tell her you just lost your job and you are broke. If she says never mind we will make it somehow then you got a winner. Otherwise......

[EyesWideOpen]

The government’s first-car policy has greatly contributed to the growth of auto sales in Thailand last year

and to this: Roads in Thailand worlds sixth most dangerous which cost the country manyfold the income from autosales annually.

http://www.nationmultimedia.com/national/Roads-in-Thailand-the-sixth-most-dangerous-30202575.html

Wouldn't lots of car crashes help out the auto industry? Ok my bad....:-) Traffic is horrific now, hopefully this government program will run out of money soon. Then later when the cars are repossessed, I guess that will cut down on the traffic. Edited March 26, 2013 by EyesWideOpen

[deckard]

Wow , does this mean with all the cancelled new car orders , the waiting time for delivery of new cars will be cut from the 8/9 months quoted by dealers . I think not

[waza]

Seems like they are expecting a high percentages of those who have ordered vehicles under this scheme to default and their only concern is how its will effect the auto industry, OH the empathy.

[Johnnie99]

For people who chose to live here, we sure are a cynical lot. I know experience teaches us cynicism, but come on ... I am the last to give anything to them but surely sometimes we should make an effort to be nice?

OMG. I cannot believe I just wrote that!

[FarangTalk]

and the old trick from one of the bronx DeNiro movies test:

open the door for your woman and let her get in the car - close her door.... slowly walk around the car to your side and see if she unlocks the door for you before you have to put the key in the door.... now THAT is the test to see if she really loves you or not....was great forget which movie A Bronx tale maybe?? anyway back to topic...1.2 million cars maybe up to 2 million I heard....wait till the payments have to be made..and gas paid for ... oh and the 2 year drive to the malls now on saturday cause there is 800,000+/- more cars on bangkok streets 5 5 5 I live and work out in Rangsit area and the volume of traffic is way up some days....and the t

TV article today that the gov is out of rebate money....also a thai friend told me if the car gets stolen in 5 years you have to pay BACK the 100,000 bt.....anyway - any people that have money certainly come out ok... son or daughter gets a new car.... just wait till the payments start kicking in.... there are tons of vehicles already sitting second hand out in the burb's car lots that are low miles and the owner just couldn't pay the monthly payments...will be a lot more by the end of the year with the rebate scam....ar ar ar how to bankrupt a country and still get re-elected should be Badluck's motto....

I don't understand why people are beating on this guy. In Canada assets are split equally when a marriage ends, it is understood that both partners contributed to the accumulated wealth. In Thailand your wife gets it all, nothing wrong with having something in your name. I love my wife, we have been together for 7 years, I hope we're together for many more, but when I buy a new car it's going in my name. I have a lease on our home to protect me, she owns the house, 2 parcels of land and our current vehicle. When a woman, Thai or not, objects to you having something of your own, you have a problem. I think a good test is is to suggest that instead of buying a house in her name, that you buy a condo in your name and tell her to trust that you will leave it to her in the event of your demise, see how much she trusts you.

the Bronx tale/DeNiro test doesn't work anymore.

This was back before there was central locking remember. So each door had to be unlocked individually. These days with keyless entry, one push of the car key remote open all doors. So if you open her door for her and walk around to your/driver's door - it's already unlock. Its pointless for her unlock and already unlocked door!

I think a good test is tell her you just lost your job and you are broke. If she says never mind we will make it somehow then you got a winner. Otherwise......

What if she offers to go back to work in the bar to support me?