BANGKOK – According to the Bank of Ayudhya, the commercial sector will likely grow by 3.2% this year, an increase from last year’s 2.8%.
The comment was made by the Bank’s head of Krungsri Auto Group, Pairote Cheunkrut, who credited the sector’s improved performance prospect to the government’s investment plan during the latter half of the year.
Despite the positive outlook of the sector, Mr. Pairote predicted that auto credit sales this year would likely drop 10% to 455 billion baht. He explained that the lingering effects of household debt and the auto tax hike are the major elements of the decline. The head of Krungsri Auto Group said the two negative factors will also likely cause non-performing loans to increase to 2.32% this year.
Mr. Pairote projected that 720,000 new cars and one million used vehicles will be sold this year. He pointed out that the latter figure would mark a recovery in the second-hand car market.
