Crazy new bike prices for Thailand. What do you think?

[rich1968]

It's just my opinion, but I am sure a few of you will agree that the prices of the new Dtracker 125cc at 82,000 and the new Honda PCX7 125cc at 68,000- 72,000 baht are massive price hikes for the Thai bike market. The first new bike I bought in Thailand was a Nouvo 115cc automatic at 33,000 baht, that was 8 years ago. Now we are seeing 125cc bikes entering the market at 70-80,000 baht. Are the Thai people in general, really that much better off these days, as is reflected in the price increases on these two new market entries?
I do realize that these two new bikes are very good bikes but are they really value for money in Thai terms?, not from the standpoint of the Farang who always eqate the value to the cost of the same type of bike from 'back home'. It would be interesting to hear your views. :?: :!:

 

[Azoulay]

Hi Rich,

You made a good remark about price evolution, however I think we -Foreigners (I prefer this word than the one you used) should cease to think than Thai people can't afford for such prices.

Thai are the number one Consummer in Thailand and have a spending power higher than you could expected just look around you and even compare...

In countryside, have you seen the number of brand new pickup sold ? In Bangkok and big cities have you seen the number of supermarkets and malls ?

Everyone has at least two mobile phone with a growing communication budget allocated to it.

Credit and family structure make that Locals could afford for higher ranked products.

 

[KZ]

I believe most new vehicles are being financed - such a great deal, you go to the dealer, sign a paper that you will pay x amount for the next 24 / 36 / 48 months, maybe plunk down 20%, and off you go on your brand new scooter or pick-up. You ARE somebody. If you can't make the payments and loose the vehicle half a year later, so what! It was fun as long as it lasted and who cares.
Maybe I'm a bit cynical but I've seen it happen too often, people who pay 3000THB rent suddenly have a new Isuzu, top-of-the-line, with 4 doors, 3.L turbo engine, not the cheaper version. Now we're doing business. Everybody helps selling fruit or flowerpots or whatever. Season is over, car is gone. Nobody cares, it's better to have done it than not.
Of course lots of people pay their vehicles off, and they don't mind paying 70,000 instead of 50,000 cash, who cares if I have to pay for the next few years as long as I have a status symbol now; Thai people live now.
Under these conditions the producers would be stupid to compete with each other who has the best price!
The PCXi 125 I saw already in the streets, sold already!

 

[KZ]

You were asking "value for money" - if the CBR150R with an aluminum frame and a sweet little150cc watercooled engine with 4 valves, DOHC and a 11:1 compression that revvs to 12,000 is about 66,000THB, is a 125cc air-cooled 2 valve steel-framed dirt bike that can hardly go 110 worth 80,000 THB?

 

[johngooding]

Well with the DTracker 250 at about 150K and the 650's around 230 to 260K on the road, nothing else new in Thailand touches these prices, so Kawasaki are leading the way with more realistic price bikes, on the larger capacity made in Thailand bikes.
An article in last weeks Bangkok post describes the Honda PCX7 as launched to appeal to the high end market, As Azoulay says, there are some high spending Thais around, and these do not need finance. Maybe they are looking for something a bit distinctive for their runarounds.
8 years of fast growing Thai consumerism, probably somewhere in the expected price range.
As with most things, if we thing they are not value for money we won't buy, but some will for the same reason they buy the Mercs and BMW cars at ridiculous import prices.

 

[LivinLOS]

Azoulay wrote: Hi Rich,

You made a good remark about price evolution, however I think we -Foreigners (I prefer this word than the one you used) should cease to think than Thai people can't afford for such prices.

Thai are the number one Consummer in Thailand and have a spending power higher than you could expected just look around you and even compare...

In countryside, have you seen the number of brand new pickup sold ? In Bangkok and big cities have you seen the number of supermarkets and malls ?

Everyone has at least two mobile phone with a growing communication budget allocated to it.

Credit and family structure make that Locals could afford for higher ranked products.

But its debt, not increased real wealth..

Thai (and asian) society has such an emphasis on face, that living in a 1 mil baht home, while driving a 1 mil baht car is something that you see fairly often. This saddles them with debt beyond their wage ability and puts them into the cycle of working to pay off credit forever to maintin and impression of wealth and status.

I know a bar girl, had a perfectly serviceable nissan wingroad, because she rented scooters and was paying them off she gained some credit history, next time I saw her she had gone out and bought a brand new mazda 3.. This is a girl who probably never had >50k to her name. Last I heard she only made a few payments and they came and took it back.

Inflation down here on Phuket is just insane, and leading to a very 2 tier society with haves and have nots, that leads to increased crime and issues of resentment etc. Hell a burger and fries here can be sold for 700 baht, no wonder the impression is all farangs are minted.

 

[feejer]

Its not just Thailand seeing increased bike pricing. Here in the US, almost every dealer has slashed the amount of new bikes they are ordering meaning far less supply next year.

Talking to the local dealer today indicates that due to dismal economy/market conditions, they will drop from ordering 300 Yamahas in 2009 to 30 for 2010. And that we can expect price increases next year anywhere from $1000-2000 depending on the bike. And its not just Yamaha. Try getting a new V-Strom 650 ABS right now. Limited supply combined with devalued dollar forcing all Asian sourced stuff to be repriced.

This particular dealer's strategy is now to focus on the used market and is scouring the auctions now to have something to sell this spring.

 

[feejer]

Captain_Slash wrote: Are people really stupid enough to pay 700 Baht for a burger and fries on Phuket?

Yes they are. And 130-150 baht for a Starbucks latte. That's more than I pay in the US by a large margin. Starbucks corporate is making silly profits over there with their lower operating costs.

 

[bard]

Kawasaki on big bikes are in a class by themselves, look at the imports...

When they release the Yamaha XT660R in 2010 it will probably be around 500 - 550k
BMW G650 X Challenge is 603k

Too bad Kawasaki won't sell the KLR650 here, Suzuki the DR650S, DRZ400 and DR200SE or Honda selling the XR650L or CRF230L

Yamaha might not sell the WR250R as they predict a 300k+ price, who would buy it when the KLX250 is 150k?

Right now there is 2 renowned dual sport bikes in Thailand, the KLX250 and the BMW G650X, the remaining BMW's are RTW bikes not proper DS bikes. If Yamaha can bang in the XT660R we would at least have one more choice and IF the price is about 100k cheaper than the Beemer it would have a market by itself.

Kawasaki is unique as they are Thai made with a sales agreement, not a BOI license and can sell dead cheap compared to the other brands, who is forced to import.

 

[KZ]

Funny you mention the DR200SE - I was thinking of that bike, a full-size proven Enduro with a 200cc air-cooled 2-valve engine, perfect for the thai market! If the Phantom 200 sells for 86,000, the Suzuki sell for 80,000, assembled here. But 80,000 for Kawasaki's pee-wee 125? Nah...
Suzuki should open a factory here, assemble the DR200, the DR650, the 650 Savage is cheap and should sell well, the SV650, - well, dream on!

 

[fj craig]

I beleive that you can still get a new kawa 112cc runaround for about 30,000 so if you just want a scooter not much has changed . There are of cause some people both Thai and farang who must have the newest,shiniest status symbol and as has been said get themselve into debt isn't that how the banking crisis started? Saying that some HiSo freinds of mine think nothing on spending 10,000 baht on a night out and could easily afford either or both of these bikes. The market will decide

 

[bard]

I saw on the Suzuki Thai website they will sell the 250cc roadbike, why not the DR200 it's a brilliant cheap dual sport bike, if they released that for around 80k it would really do a lot for ADV and DS riders in Thailand.

Seems to me they all concentrate of selling Streetbikes, Supersports and choppers. Dual sport is negligible and RTW bikes is only BMW who sells.

Dual Sport is only KLX250 for 150k and G650X for 600k nice spread in price... Say we got DR200 for 80, KLX250 for 150, DR650 at 250-300k, XR650L at 350-400k, XT660R at around 500k and top with BMW and KTM at around 600k there would be choices. Something for everyone and up to you how much money you would be happy to get rid off.

But seems to me everyone is getting street bikes and choppah in a place where dual sport is legal and dead fun.

So we're forced to grey import with no warranties and all the hassle it brings us.

 

[LivinLOS]

feejer wrote: Its not just Thailand seeing increased bike pricing. Here in the US, almost every dealer has slashed the amount of new bikes they are ordering meaning far less supply next year.

Talking to the local dealer today indicates that due to dismal economy/market conditions, they will drop from ordering 300 Yamahas in 2009 to 30 for 2010. And that we can expect price increases next year anywhere from $1000-2000 depending on the bike. And its not just Yamaha. Try getting a new V-Strom 650 ABS right now. Limited supply combined with devalued dollar forcing all Asian sourced stuff to be repriced.

This particular dealer's strategy is now to focus on the used market and is scouring the auctions now to have something to sell this spring.

But if a US dealer is importing them.. The debasement of the dollar will be the additional price he is paying..

Dont get me started on economics.. We'll be here all week.

 

[LivinLOS]

feejer wrote: [quote quote=Captain_Slash] Are people really stupid enough to pay 700 Baht for a burger and fries on Phuket?

Yes they are. And 130-150 baht for a Starbucks latte. That's more than I pay in the US by a large margin. Starbucks corporate is making silly profits over there with their lower operating costs.
And 350 baht a short tuk tuk.. 290 baht a bottle of beer (import) even mid 200's for a regular beer in the ruski gogo..

These arent clip joints really just responding to the tourist economy and cost of land.

 

[KZ]

They should do away with their crazy import tax on complete bikes; if it would be possible to import a used bike of my choice, pay 20% tax or so and get it registered here, there would be lots of local MC shops making a living with legally importing bikes. At the same time all these grey-book hassle and riding illegal bikes would be over. Then we could order the bike we want or bring in our own and there'll be plenty of money from import taxes.

 

[LivinLOS]

KZ wrote: They should do away with their crazy import tax on complete bikes; if it would be possible to import a used bike of my choice, pay 20% tax or so and get it registered here, there would be lots of local MC shops making a living with legally importing bikes. At the same time all these grey-book hassle and riding illegal bikes would be over. Then we could order the bike we want or bring in our own and there'll be plenty of money from import taxes.

Ahh but the losers would be the corrupt customs officials who are cleaning up on repeated 'fines' on the grey bike market and the legit revenue to customs on imported bits and bikes. Plus perhaps a few police who end up with confiscated bikes.

I fully understand protecting domestic industry, encouraging local makers, but its not like Thailand is going to design and fabricate a big bike without outside input.

 

[burnjr]

Bro,
FOR ME if u compare the bike price ,in Thailand is more cheaper then Malaysia.....BMW GS 800 in MLay cost about B 860K RM86K(US26K)..

 

[monsterman]

When you consider that Thailand is considered Mercedes Benz 6th biggest market in the world for their cars you realise how much money is around in Thailand.

 

[LivinLOS]

monsterman wrote: When you consider that Thailand is considered Mercedes Benz 6th biggest market in the world for their cars you realise how much money is around in Thailand.

WOW is that true ?? Stunning.

As to prices and inflation.. Phuket 242 baht for a bottle of water (207 baht plus service charge and VAT) I think thats a record Kinda makes a 6xx,xxx Triumph seem cheap :lol:

 

[rich1968]

I was surprised to see that the new Honda PCX7 was only a 125cc engine, if Thailand/Asean FTA is indeed to scrap the import tax on 250cc and under bikes, I would have thought the new Honda would have had a larger capacity cc, as Asia is flooded with scooters from 110cc - 135cc. Maybe a bigger cc version is waiting in the wings, as and when it can be distributed around Asia without massive amounts of duty to be paid.