Thailand’s used car market is growing thanks to the Covid-19 Pandemic. This year alone it has grown by 20 to 30%, an increase over the years before Covid, which saw an average growth of 10%. Pinyo Tanawatcharaporn, president of the Used Car Association, says the used car market typically sells around 1 to 2 million cars a year.
Now, many people who feared using public transport for fear of contracting the Covid-19 virus have resorted to Buy cars. On the flip side, many used cars hit the market after owners couldn’t afford the installment loans due to the pandemic. Pinyo says these used cars were then confiscated from creditors and are in good condition.
“The used car market is taking advantage of the government’s easing lockdown and plan to reopen Thailand. These factors have created a good mood among potential car buyers. “
The Kasikorn Research Center has said it expects used car prices to rise 5.5% to 7.5% this year due to the impact of the pandemic, with the increase being even higher overseas. But KRC says prices won’t go up much because there is a bigger supply of used cars after buyers see their cars repossessed after not making payments. Factors such as the low purchasing power of consumers and the banks’ strict lending processes are also helping to dampen the sharp rise in used cars. KRC also says used car prices will rise over the next year due to the recovery in the corporate sector’s purchasing power, resulting in increased demand for used vehicles.
The Federation of Thai Industries Auto Club also says the next year will see a surge in new car sales, with the expectation that the original target of 1.6 million units will be exceeded by the end of 2021. The club is leading the expected increase in the decline in Covid-19 infections and improvement in the semiconductor shortage situation.
SOURCE: Bangkok Post