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The brand new AlixPartners report 2024 International Automotive Outlook has stimulated various ideas and suggestions. Steve Hanley kicked issues off together with his abstract of the findings. Studying by way of that, I couldn’t assist chiming in by pulling out a few key highlights and expounding on them. In between, although, a reader contributed what could be essentially the most fascinating remark of all. Writing the remark below Steve’s article, “UjiBebek” contributes the next:
Throughout a current journey to Thailand I seen a big variety of Chinese language EVs on the roads. Based on information revealed lately, EVs gross sales within the first 5 months of 2024 elevated by 31% to 43k items, whereas whole autos gross sales dropped by 24%, all the way down to 260k items.
I mentioned this matter with an area good friend, and I discovered fascinating the affect EVs are having on the automotive market total. The provision of low cost imports from China has triggered a generalized discount within the costs of vehicles within the Kingdom.
New vehicles costs dropped considerably, with value reductions of as much as 20% utilized by sellers on the MSRP of some autos, particularly these that are in direct competitors towards the Chinese language imports. And in consequence, Suzuki and Subaru introduced their intention to shut store and exit the native market by the tip of 2024.
However the place the decrement is especially evident, is within the worth of used vehicles. Depreciation of used vehicles in Thailand has at all times been restricted (when in comparison with developed international locations reminiscent of Japan, Singapore, the USA, and so on.), serving to prospects who wished to improve their each day drive to a newer automobile. At current, nonetheless, the residual values of used autos are normally decrease than the excellent money owed owed to the banks.
That is forcing prospects, who would have in any other case modified their automobile with a brand new one, to stay to their present one until the finance contract terminates (usually 60 or 72 months). And it’s severely limiting their choices when the time comes to change to a brand new automobile.
Attention-grabbing!
So, to begin with, let’s take these EV gross sales figures a step additional. 31% gross sales progress within the midst of a broader 24% drop in gross sales within the total auto market is large. Which means EVs rose from about 12.5% to about 16.5% market share. Thailand ought to quickly be at round one out of each 5 new vehicles offered being electrical, then one out of each 4 new vehicles offered being electrical, then. …
However exponential progress is one factor. Disrupting pricing within the auto market and basically chasing some firms out of it within the course of is one thing else.
Low-cost electrical vehicles from China appear to be doing one thing particular in Thailand. I’m very curious to discover in additional element with native information sources, and much more than that, I’m curious to see if these sorts of issues are occurring in different less-talked-about international locations in Asia, Africa, and the Americas.
Photos from BYD Thailand.
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