ASEAN KEY DESTINATIONS
Stimulus to help Thai consumers
It estimates that sales will remain healthy despite high inflation and interest rates, seasonal factors such as flooding, and repercussions of the global economic downturn.
K-Research forecast sales would expand this year by 11-16 percent, a lower rate than last year's 20.2 percent. Sales this year are estimated to be between 2.04 million and 2.14 million units, up from 1.84 million last year. In the first seven months of the year, unit sales increased 15 percent year-on-year.
For the rest of the year, the market will have to closely monitor numerous risks factors especially the impact of flooding on the farm sector, the main customers of motorbikes.
Interest rate rises would also cause leasing rates to increase, making bikes less affordable. Lower industrial production, exports and tourism in Thailand due to the global economic slump could also cause certain motorbike customer groups to earn less.
However, K-Research said the there were positive elements in the government's policies to spur consumption and lift incomes for farmers and low-earning consumers, which would help lift motorbike sales directly and indirectly for the rest of the year.
The government plans a debt moratorium for small-scale farmers and low-income families with less than 500,000 baht in debt for at least three years, while also providing debt restructuring.
The rice pledging scheme, farmers' credit cards and the increase of 1 million baht in each village fund will also support purchasing power.
Plans to increase the daily minimum wage to 300 baht and the starting salaries of university graduates to 15,000 baht a month will also help the motorcycle market, it said.
Continuous marketing events for motorbike customers by retailers, especially for cheaper models in rural areas, should help to increase consumption. Temporary reductions in retail fuel prices are also expected to generate motorbike sales.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below