Bangkok Motor Show: Carmakers hope motor show will jump-start torpid sales

[webfact]

MOTOR SHOW
Carmakers hope motor show will jump-start torpid sales
Kingsley Wijayasinha
The Nation


The 36th Bangkok International Motor Show kicks off today at Challenger Hall, Muang Thong Thani. The annual event will run until April 5, 2015.

BANGKOK: -- Automobile companies are pinning their hopes on the 36th Bangkok International Motor Show to help stem the slide in sales seen so far this year.

In January and February, new auto sales slumped 11.8 per cent to 123,666 units from the same period last year.

However, sales are expected to surge this month thanks to the flood of new models gracing the annual show that marks the start of the car-buying season.

Organiser Prachin Eamlumnow reckons that more than 40 all-new, minor-change and special-edition models are being introduced at the event, which is run by Grand Prix International.

More than 30 auto marques and nine motorcycle companies are participating in the 12-day extravaganza along with 170 other exhibitors.

Hot new models include the Ford Everest, gasoline-version Mazda2, Suzuki Ciaz and Mitsubishi Delica Space Wagon.

At the upper end, Mercedes-Benz unveiled its AMG-GT S sports car while BMW paraded the i3 electric car, and in the super luxury segment, Rolls-Royce is featuring the most expensive car at the show - the Phantom Drophead Coupe Waterspeed Collection priced at a cool Bt59 million.

Carmakers are also dangling attractive offers and incentives to win over customers and grab as much sales as possible.

"Each brand is spending as much as Bt50 million to Bt80 million on its booth, which shows the importance of the event to automobile companies," Jaturont Komolmis, vice chairman of the organising committee, said yesterday.

Last year the auto market plunged by 34 per cent to 881,832 units due to the political uncertainty, slowing economy and strict financing standards set by banks.

Ripples created by the first car buyer scheme that artificially boosted car sales were also found to fade out, said Kyoichi Tanada, president of Toyota Motor Thailand.

Toyota is the largest car brand and books |the most orders at the Bangkok Motor Show every year.

Source: http://www.nationmultimedia.com/business/Carmakers-hope-motor-show-will-jump-start-torpid-s-30256671.html

-- The Nation 2015-03-25

[clockman]

Somewhere for the corruption money. To be spent!

[keemapoot]

Somebody got out his thesaurus for this article...Torpid. I'm feeling a big torpid today come to think of it.

[MYKTHEMIN]

The old location near Bang Na was 100% better, been to Impact twice never again very poor.

[Ace of Pop]

Somebody got out his thesaurus for this article...Torpid. I'm feeling a big torpid today come to think of it.

Who makes the Torpid.?. Toyota.

[BSJ]

"Carmakers hope motor show will jump-start torpid sales" Maybe they mean torpedoed? Torpedo's by (DELETED)

Edited March 25, 2015 by seedy
politics

[LNKDES1]

Perhaps reducing the outrageous import taxes/duties on new cars could be a help in increasing sales. Just a thought.

[quandow]

Thailand is still reeling from the ill-conceived "one million new cars" episode. The market is flooded with barely used cars, the economy is slumping due to lack of faith in what the future holds, and tourism dollars which are a major vein that pumps life into Thailand are coursing into other countries. Where is Nero and that violin when you need him?

[IMHO]

Perhaps reducing the outrageous import taxes/duties on new cars could be a help in increasing sales. Just a thought.

Doing that would almost certainly kill off Thai car production, shifting jobs, investment and profits elsewhere. It would be nice to buy luxury cars cheaper though, yeah - but at the expense of the economy?

[TigerandDog]

I'm in the market for a new small car and will be going to the motor show. However, I can't understand how cars manufactured in Thailand are between 90000 - 160000 baht more expensive than the exact same car in Australia, and in Oz the cost is drive away cost, here it is not, which makes the car even more expensive. e.g. Nissan March 1.2 E CVTis 464000 baht + taxes etc. In Oz the same car (but called a Micra) is AUD$13990.00 drive away ( 13990 x 25 baht = 349750 baht) a difference of 114250 baht. A Suzuki Swift GL CVT is 507000 baht + taxes etc here, but in OZ it is AUD$17490.00 drive away (17490 x 25baht = 437250 baht) a difference of 69750 baht. Depending on the type of small caryou buy and the model, these variances can be quite alarming. So why are locally manufactured cars more expensive than cars that are exported and sold in other countries.

[Dogbreath]

Somebody got out his thesaurus for this article...Torpid. I'm feeling a big torpid today come to think of it.

Who makes the Torpid.?. Toyota.

Nah, the Torpid is a new subcompact from Tata Motors featuring a 50cc 2 cycle engine. 0-100 in about an hour, ergo the name. Often confused with the Toyota Turgid, a new model vaguely reminiscent of a '58 Packard Patrician with the bling. Costs have been kept down by fitting the beast with a 1 liter diesel sourced from Hangdong Motors in China. Neither car may be used on the motorways as they lack the power to overtake anything including pedestrians.

[IMHO]

I'm in the market for a new small car and will be going to the motor show. However, I can't understand how cars manufactured in Thailand are between 90000 - 160000 baht more expensive than the exact same car in Australia, and in Oz the cost is drive away cost, here it is not, which makes the car even more expensive. e.g. Nissan March 1.2 E CVTis 464000 baht + taxes etc. In Oz the same car (but called a Micra) is AUD$13990.00 drive away ( 13990 x 25 baht = 349750 baht) a difference of 114250 baht. A Suzuki Swift GL CVT is 507000 baht + taxes etc here, but in OZ it is AUD$17490.00 drive away (17490 x 25baht = 437250 baht) a difference of 69750 baht. Depending on the type of small caryou buy and the model, these variances can be quite alarming. So why are locally manufactured cars more expensive than cars that are exported and sold in other countries.

Prices in Thailand are indeed drive-away. As for the rest of your post, the answer is simple: tax.

[BSJ]

As a protest against unfair taxes on imported cars you could just not buy one. That's what I do....er, don't!

[Ace of Pop]

Just Regard Cars Like Thai Food.Anything nice gets Imported.

[IMHO]

As a protest against unfair taxes on imported cars you could just not buy one. That's what I do....er, don't!

Unfortunately for everyone like you that's also "voting with their wallet", luxury imported cars are the only segment in Thailand that's actually seeing steady growth

[keemapoot]

As a protest against unfair taxes on imported cars you could just not buy one. That's what I do....er, don't!

Unfortunately for everyone like you that's also "voting with their wallet", luxury imported cars are the only segment in Thailand that's actually seeing steady growth

Yeah, along with motorbikes! They are selling like hotcakes. I just ordered a new Honda Moove, and will pick it up Saturday. Dealer said they have already bumped up the price 5,000 and I was lucky to get it at the lower price. Not sure if this is true, but everyone who abandoned those cars they couldn't afford under the first buyer program has gone back to buy shiny new scooters.

[ThaiBob]

I'm in the market for a new small car and will be going to the motor show. However, I can't understand how cars manufactured in Thailand are between 90000 - 160000 baht more expensive than the exact same car in Australia, and in Oz the cost is drive away cost, here it is not, which makes the car even more expensive. e.g. Nissan March 1.2 E CVTis 464000 baht + taxes etc. In Oz the same car (but called a Micra) is AUD$13990.00 drive away ( 13990 x 25 baht = 349750 baht) a difference of 114250 baht. A Suzuki Swift GL CVT is 507000 baht + taxes etc here, but in OZ it is AUD$17490.00 drive away (17490 x 25baht = 437250 baht) a difference of 69750 baht. Depending on the type of small caryou buy and the model, these variances can be quite alarming. So why are locally manufactured cars more expensive than cars that are exported and sold in other countries.

Prices in Thailand are indeed drive-away. As for the rest of your post, the answer is simple: tax.

I purchased a Toyota Camry 2.5g over a year ago for about 1.5M baht. Made in Thailand. This same car I could have purchased in California for 500,000 baht less. You are saying a locally manufactured car does not receive favorable tax treatment from the government and the differences are still attributed to tax?

[arthurwait]

Perhaps reducing the outrageous import taxes/duties on new cars could be a help in increasing sales. Just a thought.

Most cars here are bought with unpaid income tax. They have to pay it somehow.

[IMHO]

I'm in the market for a new small car and will be going to the motor show. However, I can't understand how cars manufactured in Thailand are between 90000 - 160000 baht more expensive than the exact same car in Australia, and in Oz the cost is drive away cost, here it is not, which makes the car even more expensive. e.g. Nissan March 1.2 E CVTis 464000 baht + taxes etc. In Oz the same car (but called a Micra) is AUD$13990.00 drive away ( 13990 x 25 baht = 349750 baht) a difference of 114250 baht. A Suzuki Swift GL CVT is 507000 baht + taxes etc here, but in OZ it is AUD$17490.00 drive away (17490 x 25baht = 437250 baht) a difference of 69750 baht. Depending on the type of small caryou buy and the model, these variances can be quite alarming. So why are locally manufactured cars more expensive than cars that are exported and sold in other countries.

Prices in Thailand are indeed drive-away. As for the rest of your post, the answer is simple: tax.

I purchased a Toyota Camry 2.5g over a year ago for about 1.5M baht. Made in Thailand. This same car I could have purchased in California for 500,000 baht less. You are saying a locally manufactured car does not receive favorable tax treatment from the government and the differences are still attributed to tax?

There are 3 standard taxes on cars in TH:

1. Excise tax - varies from 3% to 50% (headline number), based on vehicle type, engine capacity and HP. The way this is actually calculated results in a price increase of 3.1% to 111.1%

2. Interior tax - and additional 10% of the excise tax value

3. VAT - 7% on top again, after dealer margins have been added to the price.

All cars sold in TH are subject to these 3 taxes, no matter where they are assembled.

For imports, they have either 0% (AU), 5% (ASEAN), or 80% (everywhere else) import duty applied before the 3 standard taxes.

So yes, in short, the answer is: tax

[seedy]

One Off Topic post removed

[Anthony5]

Wasn't there an announcement by a (DELETED) minister just the other day that car sales were rising fast again?

Edited March 26, 2015 by seedy
politics

[IMHO]

Wasn't there an announcement by a minister just the other day that car sales were rising fast again?

They are... but only if you're talking about the >3M Baht luxury segment

[Anthony5]

Wasn't there an announcement by a minister just the other day that car sales were rising fast again?

They are... but only if you're talking about the >3M Baht luxury segment

Looks like a certain group of the population has just a lot of new members added then.

[ThaiBob]

I'm in the market for a new small car and will be going to the motor show. However, I can't understand how cars manufactured in Thailand are between 90000 - 160000 baht more expensive than the exact same car in Australia, and in Oz the cost is drive away cost, here it is not, which makes the car even more expensive. e.g. Nissan March 1.2 E CVTis 464000 baht + taxes etc. In Oz the same car (but called a Micra) is AUD$13990.00 drive away ( 13990 x 25 baht = 349750 baht) a difference of 114250 baht. A Suzuki Swift GL CVT is 507000 baht + taxes etc here, but in OZ it is AUD$17490.00 drive away (17490 x 25baht = 437250 baht) a difference of 69750 baht. Depending on the type of small caryou buy and the model, these variances can be quite alarming. So why are locally manufactured cars more expensive than cars that are exported and sold in other countries.

Prices in Thailand are indeed drive-away. As for the rest of your post, the answer is simple: tax.

I purchased a Toyota Camry 2.5g over a year ago for about 1.5M baht. Made in Thailand. This same car I could have purchased in California for 500,000 baht less. You are saying a locally manufactured car does not receive favorable tax treatment from the government and the differences are still attributed to tax?

There are 3 standard taxes on cars in TH:

1. Excise tax - varies from 3% to 50% (headline number), based on vehicle type, engine capacity and HP. The way this is actually calculated results in a price increase of 3.1% to 111.1%

2. Interior tax - and additional 10% of the excise tax value

3. VAT - 7% on top again, after dealer margins have been added to the price.

All cars sold in TH are subject to these 3 taxes, no matter where they are assembled.

For imports, they have either 0% (AU), 5% (ASEAN), or 80% (everywhere else) import duty applied before the 3 standard taxes.

So yes, in short, the answer is: tax

Make this easy for me. What was the total tax on my camry? My California price included about 12% for tax and license.

[IMHO]

Make this easy for me. What was the total tax on my camry? My California price included about 12% for tax and license.

I can't possibly tell you the total amount of tax paid without insight into the dealer margins... but it would have had the following taxes applied:

Excise tax: 30% (headline rate) = 44.8% on top of the dealer wholesale price

Interior Tax: 10% of the excise tax value

VAT: 7% on top of the retail price

All compounding.

It's not actually 44.8% + 10% + 7% = 52.73%, but it's certainly a lot more than 12%

Edited March 26, 2015 by IMHO

[DavisH]

I'm in the market for a new small car and will be going to the motor show. However, I can't understand how cars manufactured in Thailand are between 90000 - 160000 baht more expensive than the exact same car in Australia, and in Oz the cost is drive away cost, here it is not, which makes the car even more expensive. e.g. Nissan March 1.2 E CVTis 464000 baht + taxes etc. In Oz the same car (but called a Micra) is AUD$13990.00 drive away ( 13990 x 25 baht = 349750 baht) a difference of 114250 baht. A Suzuki Swift GL CVT is 507000 baht + taxes etc here, but in OZ it is AUD$17490.00 drive away (17490 x 25baht = 437250 baht) a difference of 69750 baht. Depending on the type of small caryou buy and the model, these variances can be quite alarming. So why are locally manufactured cars more expensive than cars that are exported and sold in other countries.

After owning the car for 8-10 years, with full servicing, you will be the same or better off in Thailand. Service charges are much higher in Oz,and resale is much worse in OZ. Service here is about 10 bucks an hour. Australia? No idea but 15 years ago it was 40 bucks an hour. That could have doubled by now.

[ThaiBob]

Make this easy for me. What was the total tax on my camry? My California price included about 12% for tax and license.

I can't possibly tell you the total amount of tax paid without insight into the dealer margins... but it would have had the following taxes applied:

Excise tax: 30% (headline rate) = 44.8% on top of the dealer wholesale price

Interior Tax: 10% of the excise tax value

VAT: 7% on top of the retail price

All compounding.

It's not actually 44.8% + 10% + 7% = 52.73%, but it's certainly a lot more than 12%

Thanks for this. Then there is no tax break for the Hondas, Toyotas manufactured here for the domestic market which I find strange. If I was a foreign manufacturer, one of conditions for my investment and manufacture in your 3rd world country is a favorable tax structure for my products.

[IMHO]

Make this easy for me. What was the total tax on my camry? My California price included about 12% for tax and license.

I can't possibly tell you the total amount of tax paid without insight into the dealer margins... but it would have had the following taxes applied:

Excise tax: 30% (headline rate) = 44.8% on top of the dealer wholesale price

Interior Tax: 10% of the excise tax value

VAT: 7% on top of the retail price

All compounding.

It's not actually 44.8% + 10% + 7% = 52.73%, but it's certainly a lot more than 12%

Thanks for this. Then there is no tax break for the Hondas, Toyotas manufactured here for the domestic market which I find strange. If I was a foreign manufacturer, one of conditions for my investment and manufacture in your 3rd world country is a favorable tax structure for my products.

Not having to pay 80% import duty isn't an incentive?