The auto auction scene is expected to be more lively as the pandemic situation continues to ease, with the private sector projecting annual growth for second-hand car sales reaching 15% this year.
Anuchart Diprasert, CEO of Apple Auto Auction (Thailand) Company Limited, said the auto industry in 2021 was heavily impacted by the pandemic, owing to the diminished purchasing power of consumers. Sales of new cars last year were down by 4%. He pointed out, however, that the situation improved significantly as figures for the first quarter of 2022 indicated 10% growth.
Anuchart noted that the second-hand auto market, valued at 80-90 billion baht, also showed signs of growth, with annual growth expected to be in the range of 10-15% this year.
He pointed out that the auto auction businesses, which are the largest supplier of cars in the secondhand market, recorded an increase in the number of cars from the second half of 2021 to Q1 2022. At least 65,000 cars are expected to be auctioned this year.
Anuchart added that competition in the auto auction market remains light, as only single-digit competitors are currently offering both online and onsite auctions in Thailand. Each auctioneer also has different target customers, steering them away from direct competition.
During the height of the pandemic, online auctions comprised 75-80% of the total auctions, up from 25-30% during the pre-pandemic period. (NNT)
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