Measures seen spurring motorcycle sales in Q4

Thailand's motorcycle market should record more sales in the final quarter of this year thanks to government stimulus measures that are expected to increase consumer purchasing power and lift business confidence, says Thai Honda, a manufacturer and distributor of motorcycles and multipurpose engines.

- LAMONPHET APISITNIRAN

The recovery is expected to be fuelled by an uptick in the granting of auto loans by banks and car financing companies as they are likely to consider relaxing the lending criteria, said Samphan Kwanjai, general manager of Thai Honda.

The projection of more loans being granted is based on a decline in nonperforming loans among car buyers, following banks' months-long strict criteria in lending money amid the high level of household debt and the state's 10,000-baht cash handout scheme that helped motorcycle owners partly repay their loans.

"We have a new government that wants to stimulate the economy in the short term," said Mr Samphan.