Thailand's auto exports may set new record

[webfact]

Thailand's auto exports may set new record
By Digital Content



BANGKOK, June 12 -- Thailand may break its automobile export record by delivering 1.16-1.22 million vehicles to other countries this year, according to the Kasikorn Research Centre (KRC).

Kasikorn predicts that auto exports can rise 6-11 per cent from Thailand's auto export volume of 1.09 million vehicles last year.

Statistics show that during the first four months of this year, Thailand exported about 357,000 vehicles, rising by 1.5 per cent year-on-year.

KRC attributes the increase to investors' persistent confidence in Thailand and other positive factors including Thailand's expansion of its export-oriented automobile production, the global economic recovery, the baht depreciation and new markets like North America.

The centre predicts that exports of passenger cars will grow faster than that of commercial vehicles thanks to new markets.

Australia, the Philippines and the Middle East region will continue to be the main markets where the export will grow well.

Some emerging markets like New Zealand, the United States, the CLMV group (Cambodia, Laos, Myanmar and Vietnam), and Peru are likely to support Thai automobile exports in the future.

Besides, Kasikorn warned that Thailand's export of passenger cars to Indonesia and Malaysia dropped significantly as investment in vehicle production rose in these countries. (MCOT online news)


-- TNA 2014-06-12

[chooka]

I guess other countries not having the 357% import duties on vehicles the same as Thailand helps. If these other countries started acting like greedy Thailand then Thailands auto manufacturing would almost collapse.

[EricBerg]

Then one can hope that part of the increased profit stays in Thailand and doesn't disappear to Japan.

[UbonRatch]

Then one can hope that part of the increased profit stays in Thailand and doesn't disappear to Japan.

You know the answer to that, and exactly why Japanese OEMs invest here. The exports are Thai, simply by definition.

[sirineou]

Why cant people be happy for Thailand?

If Thai people can stop shooting them selves on the foot with all this Political crap, Thailand is poised for a great future.I for one have great confidence on the Thai people.

[stickyrice2000]

Those countries should consider about importing cars. Those are jobs for their citizens. If they do, the tariff should be very high so these companies will consider opening a manufacturing plant over exporting option.

[Robby nz]

Given the info on this link which I posted on the motoring forum there would seem to be a limited potential for new car imports into many countries.

http://www.zerohedge.com/news/2014-05-16/where-worlds-unsold-cars-go-die

[UbonRatch]

Why cant people be happy for Thailand?

If Thai people can stop shooting them selves on the foot with all this Political crap, Thailand is poised for a great future.I for one have great confidence on the Thai people.

I'm sure you do have confidence on Thai people, but the question remains to you have confidence in them?

[thumper101]

Considering that there is a huge decline in domestic sales thanks to the Thaksin populist policy of the first car buyer relief scheme, that also ran out of cash leaving people waiting.

That brought the next few years of sales forwards.... So if you are selling less here, then obviously you are having to export MORE....

Toyota have already decided to move their 2 biggest selling cars' production to Indonesia. From the end of next year the Vios and Yaris will no longer be manufactured here.... That was announced in a news report on here about 6 months ago.

The predicted spike in exports thanks to populism, made this decision for Toyota..... Thaksin thinks, PTP does.

This report is a fake confidence booster I'm afraid.

Edited June 12, 2014 by thumper101

[dinger]

Things sure seem to change very quickly. Wasn't about 2 weeks ago that Honda said they were cutting production in Thailand due to slow world wide demand?

[sirineou]

Why cant people be happy for Thailand?

If Thai people can stop shooting them selves on the foot with all this Political crap, Thailand is poised for a great future.I for one have great confidence on the Thai people.

I'm sure you do have confidence on Thai people, but the question remains to you have confidence in them?

Yea, i have confidence in them.

I have never met a more resourceful, competent people, that do more, with less. When ever I work with them, I am surprised my their innovative solutions to every day problems.

It is funny there is a story about Thais being Tallest in south east Asia, and all the usual suspects are, blaa blaa blaa, and nothing good.

Story about Thailand setting a new record on auto exports. The usual suspects the same, bla bla bla, and nothing good.

Why cant people give credit where credit is due?

Can Thais do anything right in the eyes of the great white Hunters, who came here to show the stupid inept Thais how it is done?

Frankly I sick of it.

I am not picking on you, I know I miss used the word. "on"instead of "in" and i know you are kidding,

I am just tired of people picking on the Thai people.

[ChrisY1]

Those countries should consider about importing cars. Those are jobs for their citizens. If they do, the tariff should be very high so these companies will consider opening a manufacturing plant over exporting option.

The vehicle building industry in Australia has all but collapsed....they're just to costly to build there.....very soon, there will only be imported vehicles.

Edited June 12, 2014 by ChrisY1

[englishoak]

New cars may look great but they just something to get me from A - B, never bought a new one private in the UK in my life,20% tax loss in value day 1 and 30% on average in 3 years, no thanks. The only place id consider doing so would be Thailand if i was up country due to the little price difference of new over second hand and the fact you really have to be careful you dont get ripped buying second hand on a thrashed motor. If I did buy id as likely drive it for a decade or until it dropped dead anyway. Certainly dont need or want one in Bangkok, if I do i rent one from a Thai friend who has dozens for as long as I need it.

In the UK I still have what is now a 15 year old car that cost 5k originally with 7k on the clock at 3 years old and its still barely done 30k since most of my time ive been in Thailand. its worthless in resale value but its in too good a condition to just throw away, when i do go back from time to time I just go out and buy whatever it needs ( battery, wipers oil, change etc ) to get me through the time im back, last time after 5 years only being started twice all it needed was an oil change & new battery for £35 total, it costs nothing to keep it and makes no sense to get rid of it, ill probably still have it in 5 years time at this rate. Not that I wouldnt prefer a newer model I just cant justify throwing my old one away.

To buy a new car id have to be making my living with it to bother, better to spend 7k for a few year old one full service history with all the problems ironed out already and use the other money on better things. the cost of new every few years isnt worthwhile for most when running costs are added in any more.

I guess it depends how you see a car, for me its just a mode of transport.

I saw those car park full of new cars on the way past Bristol a few years back and took a photo in passing, ill go past again and take another pic and compare pics to see if any are still in the same place... i wouldnt be surprised to see some havnt budged.

Edited June 12, 2014 by englishoak

[Pralaad]

I know I may sound silly, but if Honda has cut it's production by 50% as per earlier report , how would exports reach new record?

[chooka]

I know I may sound silly, but if Honda has cut it's production by 50% as per earlier report , how would exports reach new record?

The same way tourism numbers are going to break new records this year.

[sirineou]

I know I may sound silly, but if Honda has cut it's production by 50% as per earlier report , how would exports reach new record?

The same way tourism numbers are going to break new records this year.

And how is that?

[bigbamboo]

A hearty well done to Japan..... sorry, I mean Thailand.

[Gomyway]

The big business really likes reading news like this:

- http://www.thaivisa.com/forum/topic/733065-junta-head-to-hold-politicians-responsible-for-their-past-wrongful-management-of-the-country/

- http://www.thaivisa.com/forum/topic/733699-shinawatra-initiated-funds-under-scrutiny/

[wabothai]

How do you qualify "mentally ill member" other than some errors in grammar seems perfectly normal thai to me.

[rebelplatoon]

Japanese, Korean and even German cars built here being exported. No matter how you look at it the Thai economy will have its advantages. Good news. Be happy for Thailand as an automotive hub.

[belg]

good those importing countries do not procude cars themselves... or they might also impose a 307% luxery tax on a foreign cars and down it would go for the thai car exports

I guess ASEAN will also be molded for thai needs, exceptions when it suits them

Edited June 12, 2014 by belg

[Thai at Heart]

Then one can hope that part of the increased profit stays in Thailand and doesn't disappear to Japan.

Yeah right. Ever heard of transfer pricing, and BOI. But shhhhhh.

That's not allowed to be talked about when it comes to fdi in Thailand. In fact globally, MNCs have done a great job of keeping that quiet.

[wilcopops]

I guess other countries not having the 357% import duties on vehicles the same as Thailand helps. If these other countries started acting like greedy Thailand then Thailands auto manufacturing would almost collapse.

As we are talking about exports, the import duties, taxes and fees are not directly relevant to this.

Most developing countries use high import duties to protect the HOME market and the labour employed, especially in the first period as the industry grows and establishes itself.

As ASEAN kicks in and various FTAs then there will be less need for these duties especially if the exports continue to become a major part of the industry.

Then consumers are lijerly to see a wider range of vehicles on the home market without massive levies on the price.

Edited June 12, 2014 by wilcopops

[wilcopops]

A hearty well done to Japan..... sorry, I mean Thailand.

People who make comments like this clearly don't understand how the motor industry in Thailand operates or even how it operates worldwide.

[chotthee]

Because no one locally can afford to buy one.

Most have to go overseas.

[wilcopops]

Because no one locally can afford to buy one.

Most have to go overseas.

As far as I'm aware this is totally incorrect as exports are less than home market at present and you can't import a car from overseas without incurring those massive duties

[techboy]

I guess other countries not having the 357% import duties on vehicles the same as Thailand helps. If these other countries started acting like greedy Thailand then Thailands auto manufacturing would almost collapse.

I knew as soon as I saw this article that someone who did not have a clue what he was talking about would throw cold water on it. An presto! First post!

[wilcopops]

It seems that many Thaivisa "commentators" on Thai industry make their judgements from the perspective of their favourite barstool, with little knowledge of what is actually happening outside their own rather limited sphere of experience.

Edited June 14, 2014 by wilcopops

[NeverSure]

Given the info on this link which I posted on the motoring forum there would seem to be a limited potential for new car imports into many countries.

http://www.zerohedge.com/news/2014-05-16/where-worlds-unsold-cars-go-die

I don't believe him. Maybe he has some of it right, but that pic he showed of 57,000 cars in the US is a joke. There were 15.6 million new cars sold in the US last year LINK and that's a drop in the bucket. Dealers and manufacturers try to keep at least a 3 month supply in the pipeline to fill orders for specific items. There's also always the danger of a strike and this gives the manufactures leverage over the unions.

I would expect him to be able to find pictures of at least 3+ million cars in the US, ready for shipping over the next few weeks.

Edited June 14, 2014 by NeverSure

[wilcopops]

Given the info on this link which I posted on the motoring forum there would seem to be a limited potential for new car imports into many countries.

http://www.zerohedge.com/news/2014-05-16/where-worlds-unsold-cars-go-die

I don't believe him. Maybe he has some of it right, but that pic he showed of 57,000 cars in the US is a joke. There were 15.6 million new cars sold in the US last year LINK and that's a drop in the bucket. Dealers and manufacturers try to keep at least a 3 month supply in the pipeline to fill orders for specific items. There's also always the danger of a strike and this gives the manufactures leverage over the unions.

I would expect him to be able to find pictures of at least 3+ million cars in the US, ready for shipping over the next few weeks.

I saw this argument years ago - I think it's a case of deliberate misinterpretation of photos to confirm a preconceived idea. One would need the dates models etc etc.

If you go to Laem Chabang one can see huge numbers of cars, but also the ro-ro cargo vessels they are stacked onto.

ALL countries subsidise their motor industries in one way or another and buying cars from manufacturers has always been popular...

Sheerness BTW is a large port, I'm not sure if they still run the passenger service to Flushing (Vlissingen) in Holland, but i suspect it is a major departure point for the export of vehicles manufactures in UK to Europe.

Edited June 14, 2014 by wilcopops