First-car policy drives Toyota dealers' sales

Jiradech Sompoprungroch, deputy managing director, said yesterday that the company’s sales of 21,161 units accounted for 7.3 per cent of Toyota’s total sales of 291,563 units in Thailand last year.
The firm targets its car sales this year to grow 65 per cent to 35,000 units, worth Bt25 billion, from 15,000 units worth Bt18 billion last year, thanks to the government’s “first-time car buyers” policy that encourages people to purchase cars.
First-time car buyers generate 20 per cent of its total sales.
Toyota K Motors is the biggest among Toyota’s 33 car dealers in Thailand. It operates 19 branches out of the total of 276 Toyota branches nationwide.
Chaiyaporn Sompoprungroat, deputy managing director, said the company’s total exports are expected to drop slightly to 30,000 units due to adjustments in market fundamentals.
“The “first car” policy is the key sales driver. People are rushing to buy a car, as they have to complete the deal this year to enjoy the tax deduction.
The company’s total sales jumped 45.7 per cent to 15,986 units in the first half. It is now delivering more than 112 units per day and 14 units per hour. During the two-day motor show, it recorded bookings of 2.5 units per minute.
The supply of cars from manufacturers will improve in this or the next quarter.
The positive factors this year are Toyota has further increased its supply to dealers, a major competitor has not yet resumed full production, oil prices are trending downward and the “first car” programme was extended to the end of this year.
However, the company is trying to clear its back orders. Customers have to wait for 2-3 months to 1-1.5 months.
The negative factors are the political turmoil, the euro-zone crisis and unexpected floods.
The firm is spending Bt50 million on marketing, of which Bt20 million is for “Hero Service Plus by Toyota K Motor”, an exclusive 24-hour service for three years only for its customers.