Thai automotive sales to exceed 1 million units this year

BANGKOK, April 30 (TNA) - The Hire Purchase Association has projected that Thailand’s automotive sales will grow by 32-38 percent to exceed 1 million units in 2012. Issara Wongrung, President of the Thai Hire Purchase Association and Chairman of Kasikorn Leasing Co., announced the forecast Monday saying that the automotive sales should reach 1.05-1.1 million units this year. Issara also said automotive financing companies should maintain their interest rates in the near future. According to him, outstanding automotive loans currently exceed 600 billion baht and are expected to increase to 830 billion baht at the end 2012. Also, he said non-performing loans in automotive finance remain low at less than 1 percent despite increases in oil prices and the cost of living. This is because the incomes of borrowers also increase. Issara added tax refunds for first-car buyers, an adjusted excise tax on new vehicles and oil prices will be influential over the decisions of potential buyers. (TNA)