Sales of new cars fall

BANGKOK, April 26 (TNA) -- Thailand’s economy which remains in doldrums has depressed sales of new cars in the country in contrary to sales of used auto, said Pairote Cheunkrut, managing director of Ayudhya Capital Auto Lease Public Co, Ltd. National economy is projected to improve in the second half this year on government’s economic stimulus measures, but household debts are still high at between 83 – 84 per cent against gross domestic product, continuing depressing loans for auto hire purchase business from the last two years, said Mr Pairote. He said sales of new auto are projected to slow down to about 720,000 cars compared to 799,000 cars sold in 2015 as buyers bought new cars before the increase of excise tax at the beginning of this year. But sales of used cars have rebounded from before, rising between 5- 10 per cent from 1.25 million used cars sold last year, said Mr Pairote. Loans to be extended for auto hire purchase in 2016 are projected to decline 10 per cent from last year which stood at 509 billion baht, he said. During the first quarter this year, total loans for auto hire purchase amounted 122.9 billion baht, a decline of around 4 -5 per cent year-on-year, he said. Non-performing loans for auto hire purchase are estimated at the minimum 2.55 per cent this year due to severe drought, sluggish economy and declining in prices of farm products, said Mr Pairote. Interest rates on auto hire purchase are now still low, between 2.9 – 3.75 per cent, he added. (TNA)