Few cars sold under first-buyer scheme
The government's first-time car buyer scheme has attracted few takers so far, as only a few thousand units have been purchased under the tax-deduction offer.
Launched in October, the policy’s many restrictions appear to have put consumers off. However, the timing of its launch – just as the flood disaster was causing myriad problems to consumers and carmakers alike – may be the main reason for the small response, and that could rectify itself before the scheme expires this year.
The Excise Department said about 6,000 consumers had applied for the tax deduction, while the Thailand Automotive Institute said the actual figure was only half that, at 3,000 units or fewer. The policy aims for sales of 500,000 units in its one-year lifespan.
Under the plan, first-car buyers are allowed to deduct the excise tax from their personal income tax. The tax-refund policy focuses on three types of vehicle: passenger cars with engines of 1,200-1,500cc, double-cab trucks, and regular pickup trucks. Both of the latter categories may be powered by 2,500-3,000cc engines.
Wallop Tiasiri, president of the Thai Automotive Institute, said yesterday that the number of cars sold through the first- buyer scheme was not very high so far, at only 2,000-3,000 units. The programme was launched while people were suffering from the devastating flood, which affected purchasing power.
At the same time, many auto-makers’ factories were submerged, interrupting productions for at least a month or two, longer for some brands.
It is expected that those carmakers will resume 100 per cent production this month as their suppliers also resume operations. Major auto-makers Toyota, Isuzu, Nissan, Mazda, Ford, Chevrolet and Mitsubishi all shared the same view, that the domestic car market should exceed 1 million units this year, of which 70-80 per cent would involve the government’s tax-deduction policy. The Excise Department targets tax refunds under the policy to reach Bt30 billion.
The auto-makers also said the car market would grow well this year as consumers who delayed purchases because of the flood crisis return to the showrooms. In addition, consumer will probably rush to benefit from the policy before it expires.
However, they agreed that there was still no clear picture of whether the policy would succeed.
Meanwhile, Nation Broadcasting Corporation, King of Auto Products, Kiatnakin Bank, B-Quick and Autocar magazine are jointly hosting First Auto Show Thailand 2012, which kicked off yesterday and will end on Saturday, at Bangkok International Trade and Exhibition Centre.
