Car market to remain depressed in 2016

Bangkok, 4 February 2016 (NNT) – Continued depression of the Thai economy has led to speculation that the auto industry will not be able to achieve positive growth this year but some analysts have noted optimism due to infrastructure investment enlivening consumer confidence.

Kasikorn Leasing President Tawee Teerasoontornwong, has forecast that the Thai auto industry will only match its figures from last year in 2016 or contract by 4-8 percent with the sale of only 73-76 thousand vehicles. He attributed his view to the slow recovery of the national economy and new excise taxes as well other factors such as the persisting drought and high household debt.

Nonetheless, he noted that increased public spending on infrastructure projects will fan consumer confidence. With the introduction of new car models and vehicles from the first car scheme being allowed to be bought and sold for the first time, Tawee foresees leasing companies and car makers putting out more attractive promotional campaigns.

The president believes the automobile market will focus on large motorcycles, pick-ups and trucks this year. His company has set its new car loan and leasing target at 73 billion baht.


-- NNT 2016-02-04

what is considered a large motorcycle?

large motorcycle taxi, so you can crash faster!!

how many Thais, other then young kids are going to buy a large bike and all they are going to do is remove the muffler and street race(another problem that the police can not control).

What crap reporting is this??? 73-76 thousand vehicles? You mean 730,000 - 760,000, I hope? Because Toyota ALONE (including Lexus) sold more than 250,000 units in 2015. Can't even get simple figures right.

Oh, it's from the NNBT... oh, I see. Never mind then.

I'm no expert; however, I looked a new Honda HRV in December. The Sales person told me that if I purchased the car in December rather than waiting until January, I would save the 90,000 Baht that would be assessed for the new tax. With a new tax of that size, I believe that the car market will be hit very hard this year. I for one will not subject myself to that horrible tax placed on top of the 100% tax that already exists here in Thailand. When I bought my 2010 Toyota, with all the bells and whistles in January 2010, I paid twice as much for it as it was being sold in the US at that time. I'm thinking that sales will drop off to the point that the govt. will have to reconsider the tax and either repeal it or reduce it to encourage auto sales later this year. My humble opinion.

I'm no expert; however, I looked a new Honda HRV in December. The Sales person told me that if I purchased the car in December rather than waiting until January, I would save the 90,000 Baht that would be assessed for the new tax. With a new tax of that size, I believe that the car market will be hit very hard this year. I for one will not subject myself to that horrible tax placed on top of the 100% tax that already exists here in Thailand. When I bought my 2010 Toyota, with all the bells and whistles in January 2010, I paid twice as much for it as it was being sold in the US at that time. I'm thinking that sales will drop off to the point that the govt. will have to reconsider the tax and either repeal it or reduce it to encourage auto sales later this year. My humble opinion.

Or one can be smart and wait for 2018 when there is 0 % import tax on cars in ASEAN, as cars are less than half the price in Laos!

Indeed hope these numbers are not correct, in a small country as Holland with about 16 mil. people, the average car sales are about 500.000 a year!

I'm no expert; however, I looked a new Honda HRV in December. The Sales person told me that if I purchased the car in December rather than waiting until January, I would save the 90,000 Baht that would be assessed for the new tax. With a new tax of that size, I believe that the car market will be hit very hard this year. I for one will not subject myself to that horrible tax placed on top of the 100% tax that already exists here in Thailand. When I bought my 2010 Toyota, with all the bells and whistles in January 2010, I paid twice as much for it as it was being sold in the US at that time. I'm thinking that sales will drop off to the point that the govt. will have to reconsider the tax and either repeal it or reduce it to encourage auto sales later this year. My humble opinion.

Or one can be smart and wait for 2018 when there is 0 % import tax on cars in ASEAN, as cars are less than half the price in Laos!

No import tax, but you be sure there will be a huge fee for an emmissions test to make it road legal, or annual road tax on imported vehicles will be astronomical, or some other scheme will be put in place where only Thai built cars can get a discount.

Thailand will always find a way to bend the rules. See beer - change the tax to include the cost of delivery from maufacturing thus increasing price of imported beer without having an import tax, then getting Indonesia to object to fre trade of alcohol on religious grounds. They like Thailand just the way it is, with money flowing to the right people, not the wrong people.

I'm no expert; however, I looked a new Honda HRV in December. The Sales person told me that if I purchased the car in December rather than waiting until January, I would save the 90,000 Baht that would be assessed for the new tax. With a new tax of that size, I believe that the car market will be hit very hard this year. I for one will not subject myself to that horrible tax placed on top of the 100% tax that already exists here in Thailand. When I bought my 2010 Toyota, with all the bells and whistles in January 2010, I paid twice as much for it as it was being sold in the US at that time. I'm thinking that sales will drop off to the point that the govt. will have to reconsider the tax and either repeal it or reduce it to encourage auto sales later this year. My humble opinion.

Or one can be smart and wait for 2018 when there is 0 % import tax on cars in ASEAN, as cars are less than half the price in Laos!

Only in your wet dreams will this happen.

"the Thai auto industry will only match its figures from last year in 2016 or contract by 4-8 percent with the sale of only 73-76[000] thousand vehicles."

Outdated news!

"Industry auto sales will decline 9 percent to 720,000 units this year" - Kyoichi Tanada, president of Toyota’s Thai unit. 2016-01-22

Excellent. Let's hope the old cars break down too, there's too much traffic already.