ID :
9771
Wed, 06/11/2008 - 11:08
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http://m.oananews.org//node/9771
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Total vehicle sales likely to decline in 2nd half of year: KRC
Bangkok, June 11 (TNA) – Thailand's total sales of vehicles are likely to decline in the second half of this year, dampened by an increase in negative factors, according to Kasikorn Research Center.
The leading think tank reported the vehicle sales grew 14.6 per cent in the first four months of this year because the sales base was low last year and new cars with engines modified for E20 gasohol had been introduced.
But sales in the second half are expected to slow since oil prices believed to stay high in the third and fourth quarters will press potential vehicle buyers to slow their decision.
At the same time, the higher cost of traveling by personal vehicles will delay some consumers decision to purchase new cars.
Higher-than-expected inflation, which is likely to rise further in the third quarter, might also reduce consumers' purchasing power and affect their decision to buy vehicles.
In addition, the upward trend of lending rates, which could push up interest rates for auto leasing, are not favourable as concerns the
purchasing power of potential vehicle buyers.
Given these factors, KRC believes that the total sales would decline in the second half of this year.
It projected that the sales for the whole year would grow only 8 per cent compared with 7.4 per cent last year.
In the long run, KRC expects the production and distribution of vehicles in Thailand will increasingly focus on small and medium-size units with engines modified for alternative fuels because they are less expensive to operate. (TNA)
The leading think tank reported the vehicle sales grew 14.6 per cent in the first four months of this year because the sales base was low last year and new cars with engines modified for E20 gasohol had been introduced.
But sales in the second half are expected to slow since oil prices believed to stay high in the third and fourth quarters will press potential vehicle buyers to slow their decision.
At the same time, the higher cost of traveling by personal vehicles will delay some consumers decision to purchase new cars.
Higher-than-expected inflation, which is likely to rise further in the third quarter, might also reduce consumers' purchasing power and affect their decision to buy vehicles.
In addition, the upward trend of lending rates, which could push up interest rates for auto leasing, are not favourable as concerns the
purchasing power of potential vehicle buyers.
Given these factors, KRC believes that the total sales would decline in the second half of this year.
It projected that the sales for the whole year would grow only 8 per cent compared with 7.4 per cent last year.
In the long run, KRC expects the production and distribution of vehicles in Thailand will increasingly focus on small and medium-size units with engines modified for alternative fuels because they are less expensive to operate. (TNA)
