Toyota predicts Thai car sales to be low

[webfact]

Toyota predicts Thai car sales to be low
SIRIVISH TOOMGUM
THE NATION


A member of the Toyota Motor Asia Pacific Engineering and Manufacturing team yesterday demonstrates how a plastic-part evaluation is conducted.

BANGKOK: -- TOYOTA MOTOR Thailand expects the auto industry's sales this year to be low, between 750,000 to 760,000 units, because of the sluggish economy, said company president Kyoichi Tanada.

The company also trimmed its own sales target for this year to about 265,000 units from the previous estimate of 280,000.

However, Tanada expects overall annual car sales to rebound to around a million units within three years.

He made the remarks during a press visit to Toyota Motor Asia Pacific Engineering and Manufacturing Company (TMAP-EM) in Samut Prakan yesterday. The venue was established in April 2007 at a cost of Bt1.3 billion as the research-and-development and manufacturing support headquarters for Toyota in the Asia-Pacific region.

The Japanese carmaker started R&D activities in Thailand in 2003 under the name TTC-AP (Toyota Technical Centre Asia Pacific) and then changed the name to TMAP-EM, adding purchasing and production-engineering functions at that time.

Currently TMAP-EM employs about 2,500 staff, of whom around 1,400 are engineers.

The facility's R&D achievements include the development of alternative-fuel engines for customers around the globe and its involvement in the development of hybrid family-vehicle software.

TMAP-EM also acts as a centre for human-resource development in Thailand and the region.

Tanada said TMAP-EM was committed to elevating the automobile industry in Thailand and the Asia-Pacific region by supporting R&D, production engineering, purchasing and human-resource development to serve regional customers better. Tanada, who also serves as TMAP-EM president, said Toyota would continue to invest in TMAP-EM, depending on the situation.

He added that he wanted the government to waive import tax for equipment to be used at this centre, which would be one way to support Toyota's transfer of Japanese technology to Thailand. Yesterday Deputy Prime Minister Somkid Jatusripitak, Transport Minister Arkhom Termpittayapaisith, and Industry Minister Achaka Siboonruang also visited TMAP-EM.

Besides those in Japan (Toyota Central Research and Development Laboratories in Nagakute, Aichi prefecture) and Thailand (TMAP-EM), Toyota has four other major R&D centres. These are TEMA/TTC (Toyota Motor Engineering & Manufacturing America/Toyota Technical Center), TME (Toyota Motor Europe) R&D/Manufacturing, TMEC China, and TTAU Australia (Toyota Technical Centre Australia).

Source: http://www.nationmultimedia.com/business/Toyota-predicts-Thai-car-sales-to-be-low-30270261.html


-- The Nation 2015-10-06

[selftaopath]

What is the amount of government tax placed on every vehicle for domestic sale? If I'm not mistaken it is exceedingly high. If so maybe this also impacts sales.

[PeVee1st]

Exactly, selftaopath, drop the ridiculous tariffs & fees, give some variety of models & you will sell lots of cars, etc.

[ChrisY1]

New Tax rates in New Vehicles....note 3lt and above attract 50%!!

[speedtripler]

New Tax rates in New Vehicles....note 3lt and above attract 50%!!

A new triumph motorcycle costs a multiple here of what it is worth..... Gtf0

[SWW]

New Tax rates in New Vehicles....note 3lt and above attract 50%!!

A new triumph motorcycle costs a multiple here of what it is worth..... Gtf0

That's most likely an imported bike. Imported vehicles attract something like 300% duty.

[clockman]

Remember the customs is one of the most corrupt departments.!

[speedtripler]

New Tax rates in New Vehicles....note 3lt and above attract 50%!!

A new triumph motorcycle costs a multiple here of what it is worth..... Gtf0

That's most likely an imported bike. Imported vehicles attract something like 300% duty.

But the factory is in Thailand.... So the paperwork to sell them involves pretending it was shipped to Britain and pretending it was imported back from Britain.... Yes I know it's hard to believe anything could be that stupid but it keeps them exclusive and extra 250% tax every time someone buys one

[RoboGeisha]

Don't worry Tanada-san. Thais crash so many cars on daily basis that the factory will always be profitable.

[Nowisee]

In the normal world, incentives would be offered and prices cut, better to sell something and make a little profit than to sit on it and make nothing... here... if like other businesses, they will increase the price.

[elgordo38]

Quote However, Tanada expects overall annual car sales to rebound to around a million units within three years. unquote. Easy Mr. Tanada your starting to spin your wheels here. No negativity in this guy. We are down for now but in a couple years we will be soaring. What a load of crap.

[Srikcir]

The 5.4% decrease in sales prediction by Toyota also means lower tax revenues collected by the government.

At a time when the government needs to provide a massive investment in the nation's infrastructure to revitalize the economy, a weakening auto industry isn't going to help.

If there are too many unsold new vehicles and the export market won't absorb the surplus, the oversupply will be dumped into the Thai domestic market at substantial price reductions. In three years an oversupply of new autos in Thailand could trigger a shortage of capital and potentially collapse the auto industry.

Welcome to DEFLATION.

[Thian]

The 5.4% decrease in sales prediction by Toyota also means lower tax revenues collected by the government.

At a time when the government needs to provide a massive investment in the nation's infrastructure to revitalize the economy, a weakening auto industry isn't going to help.

If there are too many unsold new vehicles and the export market won't absorb the surplus, the oversupply will be dumped into the Thai domestic market at substantial price reductions. In three years an oversupply of new autos in Thailand could trigger a shortage of capital and potentially collapse the auto industry.

Welcome to DEFLATION.

The Japanese are smart enough to look further and find booming country's to move to.

Maybe Indonesia ?

[farangmick]

New Tax rates in New Vehicles....note 3lt and above attract 50%!!

A new triumph motorcycle costs a multiple here of what it is worth..... Gtf0

That's most likely an imported bike. Imported vehicles attract something like 300% duty.

But the factory is in Thailand.... So the paperwork to sell them involves pretending it was shipped to Britain and pretending it was imported back from Britain.... Yes I know it's hard to believe anything could be that stupid but it keeps them exclusive and extra 250% tax every time someone buys one

May be wrong, I often am, but I thought only the retro Triumphs were built here. If you have a Speed Triple as your name suggests,(lucky man), wasn't that built at Meriden? And until quite recently the Thai Triumph factories here were bonded, so the company saved on some Thai taxes, but even bikes built here were treated as imports.

[MESmith]

Lower Toyota sales nothing to with boring "new" models released this year

[3SoiDogNight]

The ridiculously high tax on cars need to be scrapped. Even vehicles made in Thailand are heavily taxed. Reduce the car tax to a realistic rate like 5%, they'll sell more cars and still collect plenty enough revenue on a consistent basis. Also offer a wider variety of cars instead of just disposable rental cars and trucks. Toyota has much nicer cars sold in other countries but not in Thailand. Would be nice to be able to buy a brand new 2016 Toyota Crown or Century without the ridiculously high tax.

Same for all other car brands.

[Cook my sock]

The luxury market is not doing too well right now. Many suppliers are not getting paid, it's reaching crisis point. So if Thais aren't buying luxury goods then I doubt they'll be buying cars unless totally necessary.
Of course none of this is being reported, the government pretends all is well. And with all these crazy 50 m condos in central Bangkok being built, it has all the hallmarks of a pre crash

[wakeupplease]

TOYOTA MOTORS need to employ the TAT Lady

She can create sales for them

[wakeupplease]

On 10/10/2015 at 4:23 PM, farangmick said:

May be wrong, I often am, but I thought only the retro Triumphs were built here. If you have a Speed Triple as your name suggests,(lucky man), wasn't that built at Meriden? And until quite recently the Thai Triumph factories here were bonded, so the company saved on some Thai taxes, but even bikes built here were treated as imports.

 

My favourite bike built in Thailand please no tell me this is another lie

I miss my old bonnie, Now those where the days and never once did I get killed riding a big bike, did not even drop it, but the Arial Leader did go down the road once on its own.

[Disting]

Have recently moved to Brunei. Went to Honda showroom. Top model Accord. 1.26 million baht. The damn thing is made in Thailand and shipped to Brunei. Same car in Thailand is around 1.7 million baht. Rip off Thailand. Top model Jazz here is 560k. But i suppose as hardly anyone pays any income tax that they have to get the generals pocket money from somewhere. 

[kannot]

On 10/6/2015 at 8:27 AM, clockman said:

Remember the customs is one of the most corrupt departments.!

But they all passed "The  Test"  just  like the 418  police eh

[kannot]

Great  Im off to the dealer to ask for a  discount

[kannot]

On 10/10/2015 at 4:33 PM, MESmith said:

Lower Toyota sales nothing to with boring "new" models released this year

yes that Revo is so 

[kannot]

On 10/16/2015 at 5:14 PM, 3SoiDogNight said:

The ridiculously high tax on cars need to be scrapped. Even vehicles made in Thailand are heavily taxed. Reduce the car tax to a realistic rate like 5%, they'll sell more cars and still collect plenty enough revenue on a consistent basis. Also offer a wider variety of cars instead of just disposable rental cars and trucks. Toyota has much nicer cars sold in other countries but not in Thailand. Would be nice to be able to buy a brand new 2016 Toyota Crown or Century without the ridiculously high tax.

Same for all other car brands.

I  dunno seems everyone and his  dogs round here has a  pick up, dont know if theres  really room for anymore,......saturation

[overherebc]

On 16/10/2015 at 5:14 PM, 3SoiDogNight said:

The ridiculously high tax on cars need to be scrapped. Even vehicles made in Thailand are heavily taxed. Reduce the car tax to a realistic rate like 5%, they'll sell more cars and still collect plenty enough revenue on a consistent basis. Also offer a wider variety of cars instead of just disposable rental cars and trucks. Toyota has much nicer cars sold in other countries but not in Thailand. Would be nice to be able to buy a brand new 2016 Toyota Crown or Century without the ridiculously high tax.

Same for all other car brands.

 

But then people of lower class would be able to buy a car the same as the HISO family so how could you tell them apart when the car is being driven down the road.

[3SoiDogNight]

On 1/7/2017 at 5:29 AM, kannot said:

I  dunno seems everyone and his  dogs round here has a  pick up, dont know if theres  really room for anymore,......saturation

 

Saturation isn't the purpose of the current high tax on cars. Just because you think there are too many cars around you doesn't mean that others shouldn't be able to afford to own one.

Lower tax on cars means lower cost on cars which means even lower cost on used cars and old cars. Therefore a poor family can buy a car instead of piling on to a motorbike - thus fewer road deaths.

The reason why road deaths are high in Thailand is because of motorbikes.

 

 

 

 

On 1/7/2017 at 7:41 AM, overherebc said:

 

But then people of lower class would be able to buy a car the same as the HISO family so how could you tell them apart when the car is being driven down the road.

 

Sure you can. HiSos drive expensive Mercedes and BMWs. 

Lower class people buy the entry level Toyotas and Hondas.

[anotheruser]

How many cars will come off the roads in comparison to new ones being put on the road? Because we all know this country doesn't need more cars on the road.

[Shawn0000]

On 06/10/2015 at 5:47 AM, selftaopath said:

What is the amount of government tax placed on every vehicle for domestic sale? If I'm not mistaken it is exceedingly high. If so maybe this also impacts sales.

 

3% for a single cab pickup, 5% for a space cab, hardly "exceedingly high" which was actually  pretty obvious or we would see new cars costing much more than in other countries, which they do not.

[3SoiDogNight]

1 hour ago, anotheruser said:

How many cars will come off the roads in comparison to new ones being put on the road? Because we all know this country doesn't need more cars on the road.

 

Who are you to determine this? The amount of cars coming off the road is irrelevant. Many of these will be used for spare parts which is what poor people rely on to keep their cars running.

Like it or not, Thailand will continue to grow and the cities needs to build more highways, widen their roads and improve it's infrastructure.

[anotheruser]

Just now, 3SoiDogNight said:

 

Who are you to determine this? The amount of cars coming off the road is irrelevant. Many of these will be used for spare parts which is what poor people rely on to keep their cars running.

Like it or not, Thailand will continue to grow and the cities needs to build more highways, widen their roads and improve it's infrastructure.

 

My mistake you are absolutely right. I just now glanced outside from my balcony and what I saw confirms there are way too few cars on the roads. This was taken just now.