Car manufacturers are pinning their hopes on sales promotions to charge up the automotive industry, believing they can compete with the government's car trade-in proposal, which has been shelved due to its untimely launch.
They made the comments as Industry Minister Suriya Jungrungreangkit, a key supporter of the trade-in, reportedly asked the cabinet to put off the scheme as it caused some prospective car buyers to delay their purchases, pending a clearer policy of this car sales stimulus.
It has remained unclear for over a week after the trade-in proposal was floated, offering 100,000 baht trade-in coupons to individual car owners. Buyers and manufacturers are not sure whether the scheme will cover only electric vehicles and when it will take effect.
"I would like to make it clear to consumers right now that the scheme will be subject to delay," said deputy Prime Minister and Energy Minister Supattanapong Punmeechaow.
Chanchai Trakarnudomsuk, president of Mazda Sales (Thailand), said he believes sales promotions offered by car companies may be, all in all, more attractive than the trade-in scheme.
Such incentives as zero interest for installment purchases, car insurance and warranty programmes can boost sales, according to Mazda.
"People who want to buy cars will base their decision on attractive campaigns. They have yet to respond to the trade-in scheme," said Takeshi Kasahara, vice-president of Tri Petch Isuzu Sales, the local distributor of Isuzu cars.
Surapong Paisitpatanapong, vice-chairman and spokesman of automotive club of the Federation of Thai Industries, agreed with the government's decision to delay the trade-in until it comes up with more details of the proposal, including whether it should cover environmentally-friendly combustion engines.
Without a need to wait for its implementation, "I think this is now a golden time for car buyers because manufacturers are offering discounts and souvenirs," he said.