Thai auto industry to recover 2015 with cheaper eco-cars in the car market

[webfact]

Auto industry to recover next year with cheaper eco-cars in the car market



BANGKOK: -- Thailand's automotive industry will see recovery next year after car manufacturers begin second phase of the eco-car scheme, and the new excise tax that will make eco-car cheaper, takes effect, according to Industry Minister Chakramon Phasukvanich.

Speaking at a seminar yesterday entitled “CEO Talk: 2015, Turning Point in Thailand’s Automotive Industry” hosted by the Thai Automotive Journalists Association at Impact Muang Thong Thani, Mr Chakramon said the industry was expected to recover in 2015 with a combined output of 2.2 million vehicles expected, compared with the worst-case projection this year of 1.9 million.

He said as economic growth next year was expected at between 3% and 3.5% following government’s remedial measures to subsidise farmers, and mega project spendings, the industry will benefit from the growth.

He said the new excise tax for vehicles, due to take effect in early 2016, will mark a turning point for the automotive industry, as the new rate will make retail prices of eco-friendly vehicles such as eco-cars and hybrids cheaper and more attractive.

The new excise tax will be based on carbon dioxide emissions, instead if engine size.

Vehicles with carbon dioxide emissions below 100 milligrammes per kilometre will be cut from 17% to 12-14% for eco-cars.

But the 10% tax rate for hybrid vehicles will remain unchanged, he said.

Thailand Automotive Institute projects the second phase of the eco-car scheme will propel Thailand’s car production to rise by 500,000 vehicles next year.

Meanwhile Federation of Thai Industries’ automotive industry club chairman Ong-arj Pongkijworasin said Thailand was expected to make 2.1 million vehicles this year despite sluggish domestic sales and exports.

The club last month reported production dropped by 25.9% to 1.57 million vehicles in the first 10 months of this year.

Domestic sales for the period stood at 719,171 cars, a sharp drop of 36% year-on-year, while exports also fell by 1.25% to 932,365 cars.

He cited second-quarter statistics from the International Organization of Motor Vehicle Manufacturers showing Thailand’s vehicle production had dropped four places since last year to 13th.

He said first-time car buyer scheme stole future domestic demand, while car makers have not done well in exports due to internal risks and shrinking demand in the Middle East, Africa and South America.

Source: http://englishnews.thaipbs.or.th/auto-industry-recover-next-year-cheaper-eco-cars-car-market


-- Thai PBS 2014-12-02

[HeijoshinCool]

Mr Chakramon said the industry was expected to recover in 2015 with a combined output of 2.2 million vehicles expected, compared with the worst-case projection this year of 1.9 million.

Output is great, but, uhm, ya still gotta sell 'em.

[MaiChai]

Hybrid cars in Thailand: do the batteries last or does the heat kill them? Just wondered because a hybrid may be false economy if you have to pay expensive battery repairs?

[NeverSure]

Every day now it's something they are going to do. Never is there something they have actually done.

Why don't they wait until mid-2015 and tell me how it went in the first half and how great it is.

And what's this with selling cheaper cars? Is that a plus somehow?

[NeverSure]

Hybrid cars in Thailand: do the batteries last or does the heat kill them? Just wondered because a hybrid may be false economy if you have to pay expensive battery repairs?

IMHO a hybrid is already a false economy due to the increased initial cost and the depreciation on the batteries.

Who would buy an 8 year old car that would be almost ready for $4,000 worth of new batteries?

Hint. I've heard they give the old batteries away free of charge.

[terryp]

[Tatsujin]

"He said first-time car buyer scheme stole future domestic demand, while car makers have not done well in exports due to internal risks and shrinking demand in the Middle East, Africa and South America."

Kind of says it all really ...

[chainarong]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Every day now it's something they are going to do. Never is there something they have actually done.

Why don't they wait until mid-2015 and tell me how it went in the first half and how great it is.

And what's this with selling cheaper cars? Is that a plus somehow?

Shades of the PTP principal, lots of talk with very little action, you could also say they seem to be doing something, when in fact they are doing SFA

[Tony121]

If you buying hybrid made buy porsche the saving is millions of baht

[worgeordie]

More cars on the roads ,just what we need !, why are there

no small diesel engine cars for sale in Thailand,these small

eco-cars use a lot of petrol for their size.

regards Worgeordie

[Commerce]

Thais don't want little, baby, hybrid economical cars.

They want huge 4x4 SUVs to make up for the little parts missing in their egos.

[gemini81]

Just have excise stop the frickin' criminal-level outrageous tax rates on the good ones; the imports from Europe. These eco cars are just soda cans with little protection. Also to Thailand: the car scheme should have taught you a lesson: people who cant afford a new car simply can buy 2nd hand cars.

[kotsak]

At least this time they didn't blame Ebola for the low sales :>

[yankee99]

So the excise tax will be cut 3-5%. Is that 17% tax on a locally produced car. So a car today at lets say 500,000 [nissan almers] at 5 % will get a 25,000 baht discount in 2016?

[Robby nz]

He said as economic growth next year was expected at between 3% and 3.5% following government’s remedial measures to subsidise farmers, and mega project spendings, the industry will benefit from the growth.

Don't rely on farmers to buy your cars these are practical people, see what they are spending their money on :

A recent survey of farmers in Lopburi revealed that each household of farmers obtained an average 13,500 baht subsidy from the government.

68% of households spent the subsidy in farming investment, while 17% in debt repayment and the rest in household spendings.

[Rumble]

What’s wrong with the good old buffalo? Pollution free, excepting for the occasional fart, has horns for indicators, has a tail to strap on brake lights, one can even tie a bucket underneath its tail and sell the manure.

[shirtless]

Lets see what the figures will be next month .

[ggold]

Meanwhile Federation of Thai Industries’ automotive industry club chairman Ong-arj Pongkijworasin said Thailand was expected to make 2.1 million vehicles this year despite sluggish domestic sales and exports.

The club last month reported production dropped by 25.9% to 1.57 million vehicles in the first 10 months of this year.

can they make 500,000 + cars in two months? Not that any of the figures mentioned in the OP actually add up.

[Chris Lawrence]

Good idea, but eco-cars are only cheap for short distances? If the petrol engine is used a lot, petrol used is similar to standard car. The diesel may be a better option to develop. BMW/Mini has an excellent small diesel that runs on a sniff of the oily rag.

[kartman]

More cars on the roads ,just what we need !, why are there

no small diesel engine cars for sale in Thailand,these small

eco-cars use a lot of petrol for their size.

regards Worgeordie

Mazda will have a Diesel option in the next 2 model so it's a start in cars for "normal" people .

[Doc46]

What a load of crap that is,,,They bring out something new that suppose to be better for the environment but it is always more expensive than what we have now,,,so the gain for the people ,,,ZERO,,, There bank account,,,,, PLUS MILLIONS<><>Stick to what we have and better that with a better development of containing Hydrogen gas in a tank in a car ,,,,and shove that in our cars instead of petrol.Making this Hydrogen gas is by far cheaper then petrol and NO exhaust fumes and bad exhaust gasses ,,,ZERO

This WILL SAVE lots of money for the people but not for the big FUEL companies,,,THAT IS WHY THE BASTARDS DON"T WANT TO DO THIS.

[rickirs]

Mr Chakramon said, " as economic growth next year was expected at between 3% and 3.5% following government’s remedial measures to subsidise farmers, and mega project spendings, the industry will benefit from the growth."

I don't think he got the memos about the 2015 predicted growth rate.

- the Commerce Ministry projects growth in gross domestic product at 4%-5%

- the Fiscal Policy Office projects the gross domestic product to grow by 4.1%

- the Deputy Prime Minister believes the economy will grow at least 4% and could even be higher

- the University of the Thai Chamber of Commerce's estimates the economy to grow 3%-5%

- the Office of the National Economic and Social Development Board projects expansion of 3.5%-4.5%
- the Bank of Thailand lowered its estimate for growth from 5.5% to 4.8%
- Gen. Prayuth expected GDP growth between 3.5%-4.5%

But in other news ....

- the NCPO expects lower growth in 2014 and 2015

- through October 2014 the CPI has declined for the sixth consecutive month and rose in November as the smallest expansion in five years.

- expect a rise in the value of the baht against both the euro and yen currencies.
- household debt will depress GDP

- the country registered a negative growth of 0.36% for the first 10 months of 2014
- car sales for the first 10 months of 2014 were down 36% compared to the same period last year.
- Grant Thornton expects the economy to grow 3.5% in 2015

- SME survey by Dhurakij Pundit University shows GDP would grow by 3.28% in 2015
- deputy prime minister supervising economic affairs projected 3%-4% in 2015

Chakramon's predicted range for GDP growth in 2015 may be on the high side.

[surangw]

better mileage = higher fuel prices

[ultipost]

REVIEW NISSAN FINANCING & FANG DEALER

In May 2014 Nissan had a special offer of 0% interest for 3 years with 30% down payment. I (63 YO high income farang) decided to take the offer as I just purchased a house with cash. The contract was signed end of May.

At Northwave Fang (Chiang Mai province) the order was accepted and I had to pay a 5,000 Bath deposit that would be refunded when financing would not come through OR be deducted from the selling price.

In June we established contact with a manager at Nissan Financing. After a few weeks he said the 30% down payment was too low. We increased to 40% and when that –after many weeks and renting 3 cars- was too low too we increased to 50% and that offer was accepted by the end of July, while I had left for Europe until early September and I requested delivery of the car by then.

Before returning I emailed the Nissan Financing manager concerning the exact delivery date; he did not respond. After returning –and renting another car- in September he came with the message: “you need to pay 100%”. That, of course, closed the door.

I have no problem when a company does not want to finance to a farang for whatever reason, as long as they state that in the beginning. Then there is clarity and one can explore other options. But I was kept “on the leash” for 4 months and spent a small fortune in rental cars.

After that I requested to get the 5,000 Bath deposit returned. No response from Northwave Fang; I reminded. Now, December, 2014 they still did not. While the amount may not be significant it’s the principal that counts.

In conclusion, the main issues are that Nissan Finance keeps one on the leash rather than giving a NO right away and Northwave Fang is not honest.

[selftaopath]

Every day now it's something they are going to do. Never is there something they have actually done.

Why don't they wait until mid-2015 and tell me how it went in the first half and how great it is.

And what's this with selling cheaper cars? Is that a plus somehow?

Oh I can not agree more. It's ALWAYS what they're going to do NEVER what they've done/accomplished/changed NEVER. Just more Thai talk talk talk talk. Maybe they think talking makes it real.

IMO maybe the amount of tax that the govt. places on cars is a deterrent to new purchases. I know it is for me.

[selftaopath]

Good idea, but eco-cars are only cheap for short distances? If the petrol engine is used a lot, petrol used is similar to standard car. The diesel may be a better option to develop. BMW/Mini has an excellent small diesel that runs on a sniff of the oily rag.

Many vehicles run on LPG. Compared to gas and diesel the savings is extraordinary. I believe BMW is now making the LPG systems optional in many of their new models.

[arthurwait]

Oh gawd do they ever learn ?

[quandow]

OH but what a wonderful magic crystal ball they have! However, when talking to a friend of mine who sells cars, he told me that the car scheme derived a few years back to get a million cars sold in Bangkok has glutted the market with cheap cars from people who defaulted on their loans.

Crystal ball = bullsh*t

Reality = auto industry will continue to take it on the chin for the foreseeable future.

And the LIES just KEEP ON POURING IN . . .

[spidermike007]

Get rid of the excise tax altogether, for cars getting exceptionally good gas mileage. Stimulate the economy, and put cleaner cars on the road. It is a win win for the government and the people. The more the government can do to stimulate the eco car trends, the better the country will be in the long run. Thailand lags far behind it's neighbors in this area. I looked at a Prius recently. I was quoted 1.3 million baht, which is outrageous compared to the same car in the US. I asked what model year it was, and the guy said I think it is 2012 or 2013. What about the current year models? I don't know. How much discount for an older model year? None.

Are they made overseas? Why not here? And if made here, why so expensive? Why are more hybrids not available here? With gas being as expensive as it is, one would think there would be a huge variety to choose from. Thailand has to get on board with being more environmentally aware, or it runs the risk of being considered a very backward nation, completely lacking in vision.

Edited December 3, 2014 by spidermike007