Thailand’s Used Car Market Is Expect To Recover This Year
According to the Association of Used Cars, Thailand’s second-hand car market is expected to grow amid the Covid-19 pandemic. The past year has seen it develop by 20% to 30%, compared to a previous 10% year-over-year growth.
President of the Association Pinyo Tanawatcharaporn shared that the market normally grew slowly with up to 2 million vehicles sold per year.
The growing popularity of online car selling and buying platforms has given rise to several online classified platforms including Chobrod, Carsome, and Carro. The increasing number of used cars on sale online has brought large revenue from both the marketplace and value-added services to these platforms. During the 2020-2025 period the online second-hand car market is expected to enjoy a double-digit CAGR growth.
Chobrod is a prominent e-commerce site with several user-friendly features and excellent customer service, let’s see what it has in stock: https://chobrod.com/
Overview Of Thailand Used Car Market
Thailand used car market has passed its growth phase and is now in its maturity phase with a compound annual growth rate of 1.8% in the period between 2014 and 2020. Experts attributed this development to finance availability, reduced purchasing power, higher demand for private cars, and VAT on new vehicles. Another possible attribution behind current used car market trends is the drop in the availability of public transport as a result of COVID-19.
Segmentations Of Thailand Used Car Market
In 2020, Thailand used car market was dominated by OEM/B2C. While dealers make both offline and online presence everywhere in the country, large OEMs mostly concentrated in Bangkok and Tier 2 and 3 cities. Honda and Toyota accounted for the largest share of the market.
Honda is one of the market leaders
Thanks to their utility as both personal and commercial vehicles, 1-ton pickup trucks are the market leader in Thailand. And since farmers make up a large proportion of users of these vehicles, their taxes are much lower than those of economical cars and sedans.
The domination of pickup trucks also affects the average odometer reading of the country’s second-hand car market. Due to their usage as commercial vehicles, pickup trucks often reach 80,000 to 120,000 kilometers when they are put on sale.
As finance for used and new cars is getting more and more readily available, the ownership period is dipping, Most of the cars on the market are around 5 to 8 years old.
Bangkok, with a much higher purchasing power in comparison with other regions in the country, boasts the highest concentration of used cars. Occupying the second position is the Northeastern region with prominent economic growth due to its special economic zones.
Projections Of Thailand Used Car Market
By 2025, Thailand’s used car market is expected to make a recovery and grow. The avoidance of public transportation is projected to further fuel the demand for personal vehicles. Marketing and promotional activities will likely increase, along with partnerships between foreign and domestic brands.
The COVID-19 pandemic has pushed people away from public transport due to the high chances of catching the virus. With the demand for personal vehicles on the rise, used cars become more attractive as they are around 30% to 40% cheaper than new ones.
Cheap used cars are always readily available on Chobrod: https://chobrod.com/car-sale
People avoid public transport due to the pandemic
Many of the used cars on sale on the market are the ones from owners who were unable to pay installments as a result of the pandemic and thus seized by financial institutions.
Mr. Pinyo said the fact that the government was easing lockdown regulations had given hopes to would-be car buyers. Last year, when travel restrictions and curfews were enforced, used car prices hit a new low, but now when things have changed for the better, the market was expected to recover.
According to Kasikorn Research Center, second-hand car prices are projected to increase by 5.5% to 7.5% this year. However, a sharp increase is not going to take place as weaker purchasing power and stricter loan criteria will hinder the price growth. For next year, Kasikorn Research Center’s projection for the price is also an increase due to the business sector’s recovered purchasing power which leads to a higher demand for trucks and second-hand cars in general.
As Thailand is now back on its feet and the semiconductor shortage is easing, the Federation of Thai Industries’ automotive club projected that more than 1.6 million cars would be produced this year.
