Chinese EVs, economic factors drive vehicle repossession up
Auction firm sees 8.7% increase in the number of vehicles being repossessed, with many of them pick-ups used by their owners for commercial purposes
Affordable electric vehicles from China and the slumping economy have resulted in more vehicles being repossessed for auction this year, leading auction firm Union Auction Plc revealed on Wednesday.
Union Auction has handled the auctions of around 250,000 vehicles this year, increasing from around 230,000 vehicles in the same period last year, a jump of 8.7%, the company’s managing director Suthee Samathi said.
About 60% of these vehicles are pickup trucks, which are mainly for commercial use, he added.
Suthee pointed out that the arrival of affordable EVs from China has shaken up the ecosystem of the Thai auto industry, undermining the existing price structure.
The increasing vehicle repossession was also driven by economic factors, including slow economic growth, rising household debts and non-performing loans (NPLs), he said.
Suthee estimates that this trend will continue into next year, with around 250,000 vehicles being auctioned by the company. However, he expects the prices of used vehicles to go up by 10-15% next year, after suffering a drop of 30% in the second half of the previous year, the lowest point yet.
Union Auction handled auctions of only 40 EVs last year but expects this year’s tally to be around 100 EVs.
