While many Governments are promoting EV cars, what are they doing to make them viable?
Repossession of vehicles, including electric vehicles (EVs), has seen a noticeable increase in Thailand, according to Union Auction Plc, one of the country’s leading auction firms. On Wednesday, the company revealed that the number of repossessed vehicles has risen by 8.7 percent this year, with many of these vehicles being pickup trucks used for commercial purposes.
The growing number of repossessions is largely attributed to the influx of affordable electric vehicles from China and the country’s sluggish economy. Union Auction has managed the auction of approximately 250,000 vehicles this year, up from around 230,000 vehicles during the same period last year.
Moreover, this marks a significant increase, according to the company’s managing director, Suthee Samathi. Pickup trucks make up about 60 percent of the repossessed vehicles, as they are predominantly used for commercial activities such as transporting goods and services. Suthee highlighted the impact of the arrival of affordable EVs from China, which have disrupted Thailand’s automotive market.
These vehicles have been undermining the existing price structure, making it harder for traditional vehicle owners to keep up with payments or maintain their vehicles, leading to more repossessions. The rise of these cost-effective EVs is part of a broader shift in the Thai automotive landscape, as consumers increasingly opt for EVs due to low costs and incentives.
Economic factors have also contributed to the uptick in vehicle repossessions. Slow economic growth, escalating household debts and a rise in non-performing loans (NPLs) have placed added financial pressure on consumers, particularly those in the commercial sector who rely on vehicles like pickup trucks for their livelihoods.
On top of that, with many businesses facing financial strain, the ability to keep up with loan payments on vehicles has become more challenging, resulting in a greater number of repossessions. Looking ahead, Suthee anticipates that this trend will continue next year. He predicts that Union Auction will handle around 250,000 vehicle auctions in 2024, maintaining the same level of repossessions as in 2023.
However, he expects the prices of used vehicles to increase by 10 to 15 percent, following a sharp 30 percent drop in prices during the second half of the previous year, which marked the lowest point for used car values. Regarding EVs, Union Auction expects a significant increase in the number of electric vehicles going through their auctions.
While the company auctioned only 40 EVs last year, it forecasts that the number will rise to around 100 EVs this year, reflecting the growing interest in and supply of electric vehicles in Thailand’s market. The rise of EVs in repossession statistics signals both an evolving automotive industry and the financial challenges faced by many Thai consumers.
We got all this from The Nation and their full article is linked here. Thank you The Nation for the information and images.
