Thailand’s used car market set to continue to grow thanks to the Covid-19 pandemic
Thailand’s used car market is expected to continue to grow thanks to the Covid-19 pandemic. This year alone it has increased by 20 to 30%, which is an increase from the pre-Covid years which had seen an average growth of 10%. Pinyo Tanawatcharaporn, president of the Association of Used Cars, explains that normally the used car market sees around 1 to 2 million cars sold per year.
Now, many people who were afraid to use public transport, for fear of contracting the Covid-19 virus, have resorted to buy cars. On the flip side, many used cars are hitting the market after owners couldn’t afford to pay off installment loans due to the pandemic. Pinyo says these used cars were later seized by creditors and remain in good condition.
“The used car market is benefiting from the government’s easing of the lockdown and its plan to reopen Thailand. These factors have created good feelings among potential car buyers.
The Kasikorn Research Center said it expects used car prices to rise 5.5-7.5% this year due to the impact of the pandemic, with an even higher increase abroad. But KRC says prices won’t rise sharply as there is more supply of used cars after buyers see their cars repossessed after failing to make payments. Things such as low purchasing power of consumers and stringent bank loan approval processes are also helping to curb the surge in used cars. KRC also says used car prices will rise next year as the purchasing power of the business sector recovers, leading to increased demand for used vehicles.
The Automobile Club of the Federation of Thai Industries also said that next year will see increased sales of new cars, with the hope that it will surpass the initial target of 1.6 million units by the next year. end of 2021. The club attributes the expected increase to the decrease in Covid-19 infections and improvement in the semiconductor shortage situation.
THE SOURCE: Bangkok Post