Crisis slows down premium-car sales

After meeting with Industry Minister Mingkwan Sangsuwan yesterday, Michael Kordys, president of the BMW Group Thailand, said sales in the premium market were sluggish, due to the current political situation.

"We don't think we will achieve our target this year, but we still expect our sales to be higher than last year. The impact on the automotive market also depends on how long

political tensions last," Kordys explained.

However, he declined to disclose this year's sales projection.

He also encouraged the government to support environmentally friendly cars and giving buyers better options by lowering the import duty.

"Clean-diesel vehicles are environmentally friendly and fuel-efficient, so customers will have better alternatives if the government cuts the import duty," he said.

Commenting on alternative-fuel vehicles, he said although the government had showed a strong interest in promoting E20- and E85-compatible vehicles, its policy had remained unclear for three or four months now. "This is reducing confidence among consumers and investors," he said.

Meanwhile, Industry permanent secretary Chakramon Phasuka-vanich said his ministry would meet with Joint Foreign Chambers of Commerce in Thailand (JFCCT) next month. While admitting the political chaos was affecting investors' confidence, he said the Board of Investment was adopting measures to stimulate investment and restore confidence.

JFCCT chairman Nandor von der Luehe said the government should lift Bangkok's state-of-emergency decree, in order to re-establish the country's good image abroad.