The used automotive market in Thailand is predicted to develop by 15% this yr, pushed by the extended scarcity of semiconductors required to fabricate new vehicles, says the Affiliation of Used Automotive.
The chip shortage affected gross sales of recent automotive fashions and precipitated automakers to delay the supply of vehicles to clients, stated Pinyo Tanawatcharaporn, president of the affiliation.
“Many shoppers do not need to watch for deliveries which will be delayed for 6-8 months, so that they determine to purchase used vehicles as a substitute,” he stated.
The Federation of Thai Industries’ Automotive Trade Membership stated the nation’s automotive business stays affected by the chip drawback although the worldwide semiconductor scenario improved in direction of the tip of final yr, after there was a drop in demand for the merchandise from the knowledge know-how sector.
In 2022, used automotive gross sales within the home market elevated by 15% year-on-year to 1 million items, up from 900,000 items in 2021, as issues over Covid-19 infections precipitated individuals to purchase vehicles to keep away from travelling on public transport.
The pandemic hit Thailand in early 2020.
“Prospects’ behaviour has modified for the reason that pandemic. Many individuals are nervous the federal government’s measures to include the unfold of the virus throughout their journey is probably not sufficient,” stated Mr Pinyo.
There are at the moment a complete of 60 million used vehicles in Thailand, together with vehicles which run on roads for simply greater than a yr and people that are now not used.
The expansion of the second-hand automotive market in Thailand normally goes in the other way of financial development, he stated. If the economic system turns weak, the market will increase, however individuals have a tendency to purchase new vehicles when the economic system is sweet.
Regardless of vibrant prospects for the used automotive market in 2023, Mr Pinyo stated a rise in coverage charge made by the Financial institution of Thailand final yr might have an effect on individuals’s determination to purchase second-hand vehicles.
The rise adopted the US Federal Reserve’s rate of interest hike to decelerate the surge in inflation.
“The Thai used automotive market could also be affected by greater rates of interest that are anticipated to maintain rising sooner or later,” stated Mr Pinyo.
“However we’re optimistic individuals will proceed to purchase used vehicles through the first and second quarters of this yr.”
Costs of second-hand vehicles are about 30-40% decrease than these of recent vehicles, in keeping with the affiliation.
At current, there are 5,000 registered corporations promoting second-hand vehicles.
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