Thai Honda Manufacturing Co, a local motorcycle manufacturer and distributor, is concerned rising household debt and the Bank of Thailand’s plan to regulate operators of auto hire-purchase and leasing businesses will affect the country’s motorcycle sales this year.
The central bank’s new regulations are aimed at preventing the rate of household debt from rising and controlling the non-finance sector, which could affect the volume of motorcycle sales in the country, said Wiwat Lertpati, the company’s chief sales and marketing officer.
“This may affect the sales volume in the domestic market. The company expects the country’s sales volume to drop by 5-10% this year,” he said.
Thai Honda is monitoring the household debt and the government’s measures to control the non-finance sector. The company is optimistic as the inflation rate continues to decelerate, which increases people’s purchasing power, said Mr Wiwat.
The new government’s stimulus measures are also expected to boost economic growth and purchasing power in the country, he said.The enforcement of a Bank of Thailand draft royal decree on auto hire-purchase businesses is expected to come into effect between the end of this year and the beginning of next year.
The central bank plans to
oversee the sector in two core areas: market conduct and macroprudential regulation.
Thai Honda expects the country’s volume of motorcycle sales this year to reach 1.85 million units, an increase of 3% year-on-year. Source: Bangkok Post
