February 19, 2008
BANGKOK - Auto sales in Thailand soared 17.6 percent in January from one year earlier, spurred by a government tax break for people buying fuel-efficient cars, the industry said Tuesday.
Total sales reached 45,431 units in January, powered by a 32.8 percent surge in sales of passenger cars. Sales of commercial vehicles and one-tonne pickups rose 11.4 percent, according to Toyota Motor Thailand.
"The sales increase resulted from consumers' decisions to delay purchases late last year as they wait for the government to reduce the excise tax on cars that use a fuel blended with 20 percent ethanol," Toyota said in a statement.
Starting January 1, the excise tax on cars using so-called E20 fuel dropped sharply, falling to 25 percent from 30 for compacts, according to AFP.
The E20 fuel, which is only available in parts of Bangkok, is nearly 20 percent cheaper than normal petrol. Thailand imports all of its oil for petrol, but produces ethanol locally.
Toyota predicted that growth would remain strong in passenger car sales during February as new models hit the market and Thailand's cost-conscious consumers switch to cars that run on cheaper biofuels.
Leading Japanese automakers Toyota, Isuzu and Honda accounted for 77.3 percent of the market.
Consumer confidence is expected to rise this year following the installation of a newly elected government this month, which replaced an army-backed administration.
Toyota predicts car sales in Thailand will grow 11 percent to 700,000 units this year, following two years of declines.
