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Home » Reader question » Reader question: why do I see so few Audis in Thailand?
Reader question: why do I see so few Audis in Thailand?
Dear editors,
Just a curiosity, but maybe you know the answer. We have been coming to Thailand for a holiday for a number of years and have seen the country slowly change. More and more luxury cars are hitting the streets. As a car enthusiast I am happy with that.
I think you've made it as a Thai if you drive a Western car because we see more and more expensive BMWs and Mercedes. But actually I rarely if ever see an Audi, in the west also a luxury brand.
Is there a reason for that? Or has Audi not done their marketing in Thailand?
Maybe you know?
Regards,
Ben
One of the important factors, in my opinion, is the price of such cars in Thailand. I checked the database of the Thai customs and then see, for example, that for a passenger car with a 2 liter engine, originating in the EU, an import duty of 200% of the value applies. In comparison: on the import of, for example, a Japanese passenger car into the EU, the import duty is only 10%.
Recently, the Porsche showroom in Siam Paragon in BKK saw a Porsche Boxster that cost almost 8 million. Baht, so around 200.000 euros. In the Netherlands, the starting price of that car is around 70.000 euros, in Germany it is considerably lower due to the lack of BPM......
It cannot be otherwise that the price is indeed an important factor.
I must add to the above with the comment that due to those high prices, the Thai market is relatively limited for European manufacturers. A brand's reputation and prestige will then play a major role and in that respect, for example, Mercedes in Thailand has a big lead over Audi, as a Thai car connoisseur and enthusiast has just assured me.
Yes, limited market and reputation. Audi (and also Volvo, for example) are more the "understated" luxury brands. BMW and Mercedes can (!) be more showy, something that naturally appeals to a status horny Thai.
But above all, of course, the price. If I'm not mistaken, BMW 5-series (and 3?) are imported into Thailand as kits (CDKs) and then reassembled. As a result, the tax is lower. Since Audi (in my opinion) does not, the price of an Audi is higher and, on balance, harder to sell, regardless of status and reputation.
For the same car as in my example, but with CKD – Completely Knocked Down – the database also indicates a rate of 200%. The value on which that percentage is levied will probably then be lower, or there will still be special benefits due to the investments in Thai assembly.
Mercedes has a factory in Thailand where cars are made for the S/E Asia market.
There are 287 Audi used cars for sale in Bangkok.
http://www.one2car.com/AUDI
As far as I know, BMW (Rayong) and Mercedes (Thonburi) produce certain models in Thailand.
Source Wikipedia:
Mercedes Thailand – assembly of C, E and S class vehicles by the Thonburi Group
BMW:
http://www.bmw.co.th/th/en/general/manufacturing/content.html
There will therefore be no (high) import levy on these models.
The Bayoke Tower has served as a billboard for BMW for as long as I have been in Thailand.
For example, you see models of Mercedes driving that are not for sale in Europe.
Also from BMW. Indicates that what Michiel writes is correct. As Dennis already writes. The Thais are status horny and the cars must therefore clearly indicate that status.
To each his own.
J. Jordan.
If the Mercedes C-series is supposedly made in Thailand, how did they come up with a price tag of 3,9 million baht in Thailand. In Belgium, the same car costs 46.000 euros. I don't believe they are made in Thailand.
Bangkok Post of February 1 reports:
– Mercedes-Benz (Thailand) will expand its production capacity at the Samut Prakan plant by 2.000 to 3.000. At present, 16.000 cars roll off the assembly line. Five dealers and service centers will also be added. Those investments cost 200 million baht and 1 billion baht respectively. The company expects demand for premium [?] cars in the mid- and high-income segment to increase as the economy expands 5 percent this year.
Mercedes currently has 29 dealers and service centers. There will be another in Nakhon Ratchasima at the end of April, followed by Hua Hin and then Greater Bangkok. Last year sales increased by 34 percent to 6.274 cars. The company attributes the increase to the introduction of new models that are well received in the market, such as the new M-class, B-class, SL-class, CLS Shooting Brake, CLS and A-class.
PS I have edited your response, otherwise it would have been rejected. Please use capital letters next time. Small effort.
Louis, what is happening in Thailand by the European manufacturers is mainly assembly of imported cars in parts. As I indicated above, a very high import duty – for example 200% – is also levied in that case, and that is an important cause of the high price of the car.
Incidentally, Thailand will negotiate a so-called free trade agreement with the EU; when it comes into effect, Thailand will no longer levy import duties on goods originating in the EU after a transitional period.
Am regular in Samut Prakan just outside of Bangkok. There in those gray, atmospheric factory districts, the manufacture of headlight units is outsourced by various car brands.
For example, I saw a Toyota department and one for Ford from where the units are further transported to be assembled elsewhere in Thailand at the related car brand, so I was told.
Dear Louis
As mentioned a few times, the Thais are overly sensitive to status.
Well, therein lies the high price they pay for status-happy vehicles.
In short, it's what a madman would give for it.......
Well I think traditionally there are 2 large expensive German brands Mercedes and BMW.
Audi actually joined it a lot later as a class box.
In a country like Thailand where it's all about status, BMW/Mercedes are still known to most people as the status car.
So the successful Thai would rather be seen in that than in the Audi Maja, such an R8 is not sick either 🙂
A comrade of mine has a Hotel in BKK. 20 years of Mercedes driven various models, never had a breakdown. More than 2 years ago he bought an Audi 8 Cyl., he has been in the workshop more than he has driven it, warming up (traffic jams ) oil consumption (more than 1L per week) and many technical faults, wiring, air conditioning, brake cylinders, etc. I think that the Audi does not meet the heavy traffic in BKK. The owner vhHotel has contacted several Audi drivers and they all had the same problem. Now he drives a new Mercedes again without any problems. PS. 2 weeks ago Autoweek magazine featured the 10 best and worst engines of Autos. No 1 of the worst was Audi, 1-2 and 3 of the best Honda-Toyota-Mercedes.
I have lived in Thailand for 5 years now, and once saw an R8.
They must be expensive, 120% import duties I believe.
Or maybe even more!
Just checked for you: an import duty of 8% applies to that R200, so that adds up nicely........
Indicate where you live in Thailand Jan.
On weekends here in Pattaya you will see cars passing by wealthy Thais from Bangkok, whom you will not often see elsewhere.
Nova Amari is with me in the Soi with that -5 degrees tent, which is in front of the door during the weekends. Unbelievable, seems like Hessing's showroom.
What I do like is that the ordinary Thai has no idea what such a car costs now.
Years ago I lived in a large rented house, with a house next to me that was 5 times as big, the owner was a German and he drove a Ferrari convertible, my girlfriend thought it was a cheap car, because it had no roof , I told her about the cost of the car, then she didn't understand it at all.
Hi Jan Thiel,
Sorry to bother you so much.
But are you the Jan Thiel of Jamathi?
I am currently driving around in Thailand with a moped and would love to have a beer with you if that would work!
Send me an email if you can, I don't know how else to reach you!
[email protected]
MVG
Lars from Belgium!
I'm slow again.....
For cars that are assembled here in Thailand at a Thai factory from CKD packages, the same prorated import duties apply as for the fully imported version.
However ……
It is up to the importer to convince the customs authorities that assembling the cars will yield significant benefits for Thailand.
In other words, the total tax revenue from assembly in Thailand must be equal to the tax revenue from full import.
Of course there is always tinkering with the conditions…………
The BOI – Bureau of Investments – of the Ministry of Commerce plays an important role in these kinds of issues regarding foreign investments. This means that agreements are made in advance about conditions, investments and the tax regime to be applied. For example, ultimately no import duties are paid at all on cars that are exported to another country after assembly. Thailand is of course mainly interested in allowing the economic activities to take place there, but if the products are eventually also sold in that country, import duties and the like must be paid.
HansNL is talking about ckd packages, for clarification ckd means “completely knocked down”.
Peter, I understand that too – see what I wrote about that above – but that doesn't make any difference.