Slim growth seen for Thai automobile industry in 2016

[webfact]

Slim growth seen for car industry in 2016
SUCHAT SRITAMA
THE NATION

BANGKOK: -- THE THAI AUTOMOBILE industry is expected grow only slightly next year as consumers' purchasing power continues to be weak, despite the government's injection of huge budgets into infrastructure.

Surapong Paisitpatnapong, vice chairman and spokesman of the Federation of Thai Industries' Automotive Industry Club, said purchasing power would not improve much next year because people were still worried about their future incomes as well as because of persistently high household debts.

He said that although the government was investing in infrastructure projects that would generate income for people, a lot of them still needed to get rid of their household debts before buying big-ticket items like cars.

This year, car companies in Thailand are expected to produce between 1.95 million and 2 million units, an increase from 1.85 million last year. However, only 750,000 are likely to be sold in the domestic market, lower than last year's 800,000 units.

"Car sales this year have not really improved, and this may continue through next year as the government plans to increase car taxes," Surapong said.

Meanwhile, the Board of Investment (BOI) yesterday held a conference on investment, chaired by Prime Minister Prayut Chan-o-cha. The conference attracted 2,000 businesspeople, local and foreign investors, and industrialists.

General Prayut said the government had been working with many countries in a bid to drive the economy and draw in investment and business expansion.

The integration of the Asean Economic Community is an opportunity for investors, particularly in areas being promoted as clusters and "super clusters" across the country.

This year, more than 1,923 projects have been approved by the BOI with total value of Bt539 billion. The new investments are expected to go into 20 provinces across the country and that should help increase people's incomes.

Source: http://www.nationmultimedia.com/business/Slim-growth-seen-for-car-industry-in-2016-30273586.html

-- The Nation 2015-11-24

[selftaopath]

Can a foreigner on a retirement visa purchase a vehicle on time? If not maybe allowing this would increase auto sales. In US, NOBODY (as far as I know) buys a vehicle with cash. Here it seems like this is a requirement.

[NeverSure]

Can a foreigner on a retirement visa purchase a vehicle on time? If not maybe allowing this would increase auto sales. In US, NOBODY (as far as I know) buys a vehicle with cash. Here it seems like this is a requirement.

"...In US, NOBODY (as far as I know) buys a vehicle with cash."

Hello, meet "Nobody." I'll introduce you to some of my "nobody" friends, too. IMHO only suckers pay interest to banks and finance companies.

Cheers.

[trogers]

Can a foreigner on a retirement visa purchase a vehicle on time? If not maybe allowing this would increase auto sales. In US, NOBODY (as far as I know) buys a vehicle with cash. Here it seems like this is a requirement.

"...In US, NOBODY (as far as I know) buys a vehicle with cash."

Hello, meet "Nobody." I'll introduce you to some of my "nobody" friends, too. IMHO only suckers pay interest to banks and finance companies.

Cheers.

In the US, used cars cost the same as a brand new motorbike here...

[selftaopath]

Can a foreigner on a retirement visa purchase a vehicle on time? If not maybe allowing this would increase auto sales. In US, NOBODY (as far as I know) buys a vehicle with cash. Here it seems like this is a requirement.

"...In US, NOBODY (as far as I know) buys a vehicle with cash."

Hello, meet "Nobody." I'll introduce you to some of my "nobody" friends, too. IMHO only suckers pay interest to banks and finance companies.

Cheers.

In the US, used cars cost the same as a brand new motorbike here...

WOW. That is not my experience, and I was born/raised in USA. Used cars are so so cheap in US. One very large used/new car dealer in PA, USA is Reedman. They sell cars there at unbelievably reasonable prices. For fun someone could go to their web page and verify my claim. I'd like to see the data on your view.

[kartman]

Can a foreigner on a retirement visa purchase a vehicle on time? If not maybe allowing this would increase auto sales. In US, NOBODY (as far as I know) buys a vehicle with cash. Here it seems like this is a requirement.

"...In US, NOBODY (as far as I know) buys a vehicle with cash."

Hello, meet "Nobody." I'll introduce you to some of my "nobody" friends, too. IMHO only suckers pay interest to banks and finance companies.

Cheers.

In the US, used cars cost the same as a brand new motorbike here...

WOW. That is not my experience, and I was born/raised in USA. Used cars are so so cheap in US. One very large used/new car dealer in PA, USA is Reedman. They sell cars there at unbelievably reasonable prices. For fun someone could go to their web page and verify my claim. I'd like to see the data on your view.

I'm not from the USA but can work that out without Data

[lovelomsak]

Can a foreigner on a retirement visa purchase a vehicle on time? If not maybe allowing this would increase auto sales. In US, NOBODY (as far as I know) buys a vehicle with cash. Here it seems like this is a requirement.

"...In US, NOBODY (as far as I know) buys a vehicle with cash."

Hello, meet "Nobody." I'll introduce you to some of my "nobody" friends, too. IMHO only suckers pay interest to banks and finance companies.

Cheers.

In the US, used cars cost the same as a brand new motorbike here...

WOW. That is not my experience, and I was born/raised in USA. Used cars are so so cheap in US. One very large used/new car dealer in PA, USA is Reedman. They sell cars there at unbelievably reasonable prices. For fun someone could go to their web page and verify my claim. I'd like to see the data on your view.

Cannot say for US but Canada my older brother had used car lots. Cars 2 to 6 years old sure are more than motorcycles here but go over 6 years old can buy them cheap. $500 to $2000 you can get a reliable car if you look around no problem,that translates to 14000 baht to 58,000 baht

[gandalf12]

Can a foreigner on a retirement visa purchase a vehicle on time? If not maybe allowing this would increase auto sales. In US, NOBODY (as far as I know) buys a vehicle with cash. Here it seems like this is a requirement.

"...In US, NOBODY (as far as I know) buys a vehicle with cash."

Hello, meet "Nobody." I'll introduce you to some of my "nobody" friends, too. IMHO only suckers pay interest to banks and finance companies.

Cheers.

In the US, used cars cost the same as a brand new motorbike here...

WOW. That is not my experience, and I was born/raised in USA. Used cars are so so cheap in US. One very large used/new car dealer in PA, USA is Reedman. They sell cars there at unbelievably reasonable prices. For fun someone could go to their web page and verify my claim. I'd like to see the data on your view.

Used cars in the US are so cheap you throw them away when they have a problem (Not quite but you get the idea)

[gandalf12]

Does Thailand have a car industry? I have only seen Krungthai vehicles which are actually Isuzu with the name put on, all the rest are from foreign companies. What vehicles are Thai home grown?

[Srikcir]

From the experts in the Thai auto industry:

"TISCO FINANCIAL Group's chief executive has expressed concern that the economy will have remained at its current low point for longer than expected if domestic auto sales next year are below 800,000 units" - The Nation 2015-07-23

"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 Nation 2015-10-06

Don't expect a serious economic recovery in 2016, likely GDP growth rate will be close to 2015 or lower. This will trigger greater flight of foreign capital investment to other healthier Asia-Pacific countries.

[selftaopath]

Does Thailand have a car industry? I have only seen Krungthai vehicles which are actually Isuzu with the name put on, all the rest are from foreign companies. What vehicles are Thai home grown?

Great question. I am hard pressed to think of any Thai original/initiated/ soley owned and operated company.

[In the jungle]

Does Thailand have a car industry? I have only seen Krungthai vehicles which are actually Isuzu with the name put on, all the rest are from foreign companies. What vehicles are Thai home grown?

The E Tan!

[NeverSure]

One thing holding down car sales in Thailand are taxes. Geeeezzz. The prices are outrageous!!!

Just for giggles, here's a brand new Ford Focus hatchback with auto, air, power windows, door locks, etc. etc. This is a decent sized 2 liter engine car that I can buy BRAND NEW for 570,000 baht. We have no sales (VAT) tax so that is out the door, all done and wrapped up.

I'll find you a bunch more if you want and Here it is.

[Assurancetourix]

Does Thailand have a car industry? I have only seen Krungthai vehicles which are actually Isuzu with the name put on, all the rest are from foreign companies. What vehicles are Thai home grown?

No car industry in Thailand ;

Isuzu is a huge japanese company .

They make only pickups and trucks, no sedan .

And about " E- Tan " which is a pejorative name;

don't say " E " as a prefix in thai language or only if you like jokes ;

Khun Tan are made with Kubota motors which are japaneses, too .

[In the jungle]

Does Thailand have a car industry? I have only seen Krungthai vehicles which are actually Isuzu with the name put on, all the rest are from foreign companies. What vehicles are Thai home grown?

No car industry in Thailand ;

Isuzu is a huge japanese company .

They make only pickups and trucks, no sedan .

And about " E- Tan " which is a pejorative name;

don't say " E " as a prefix in thai language or only if you like jokes ;

Khun Tan are made with Kubota motors which are japaneses, too .

And yet Etan is how some Thai manufacturers choose to name it.

See etan4you.com as one example.

Admittedly without a hyphen.

[trogers]

From the experts in the Thai auto industry:

"TISCO FINANCIAL Group's chief executive has expressed concern that the economy will have remained at its current low point for longer than expected if domestic auto sales next year are below 800,000 units" - The Nation 2015-07-23

"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 Nation 2015-10-06

Don't expect a serious economic recovery in 2016, likely GDP growth rate will be close to 2015 or lower. This will trigger greater flight of foreign capital investment to other healthier Asia-Pacific countries.

Do they expect me to believe that the correlation between GDP growth and volume of new car sales is greater than 0.5?

This is not Detroit!

[willyumiii]

Does Thailand have a car industry? I have only seen Krungthai vehicles which are actually Isuzu with the name put on, all the rest are from foreign companies. What vehicles are Thai home grown?

Did you know Fords are made in Thaialnd?

[willyumiii]

"This year, car companies in Thailand are expected to produce between 1.95 million and 2 million units, an increase from 1.85 million last year. However, only 750,000 are likely to be sold in the domestic market, lower than last year's 800,000 units."

I have often wondered what happens to new cars that are not sold when the new, next year's models are rolled out., not just in Thailand, but everywhere.

Does anyone know?

[trogers]

"This year, car companies in Thailand are expected to produce between 1.95 million and 2 million units, an increase from 1.85 million last year. However, only 750,000 are likely to be sold in the domestic market, lower than last year's 800,000 units."

I have often wondered what happens to new cars that are not sold when the new, next year's models are rolled out., not just in Thailand, but everywhere.

Does anyone know?

Here in Thailand, they are made to order as the initial introductory stock is quickly consumed. Hence, the several months of waiting time for favourite models.