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The brand new AlixPartners report 2024 International Automotive Outlook has stimulated various ideas and suggestions. Steve Hanley kicked issues off along 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 probably the most attention-grabbing remark of all. Writing the remark beneath Steve’s article, “UjiBebek” contributes the next:
Throughout a latest journey to Thailand I observed a major variety of Chinese language EVs on the roads. In response to knowledge revealed just lately, EVs gross sales within the first 5 months of 2024 elevated by 31% to 43k models, whereas whole autos gross sales dropped by 24%, right down to 260k models.
I mentioned this matter with a neighborhood good friend, and I discovered attention-grabbing the affect EVs are having on the automotive market general. The supply of low cost imports from China has triggered a generalized discount within the costs of automobiles within the Kingdom.
New automobiles 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 in opposition to the Chinese language imports. And consequently, 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 automobiles. Depreciation of used automobiles in Thailand has at all times been restricted (when in comparison with developed nations resembling Japan, Singapore, the USA, and so forth.), serving to prospects who wished to improve their day by day drive to a more moderen car. At current, nevertheless, 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 car with a brand new one, to stay to their present one until the finance contract terminates (sometimes 60 or 72 months). And it’s severely limiting their choices when the time comes to modify to a brand new car.
Fascinating!
So, initially, 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 general auto market is big. 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 automobiles offered being electrical, then one out of each 4 new automobiles offered being electrical, then. …
However exponential progress is one factor. Disrupting pricing within the auto market and primarily chasing some firms out of it within the course of is one thing else.
Low cost electrical automobiles from China appear to be doing one thing particular in Thailand. I’m very curious to discover in additional element with native knowledge sources, and much more than that, I’m curious to see if these sorts of issues are occurring in different less-talked-about nations in Asia, Africa, and the Americas.
Pictures from BYD Thailand.
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