Flood crisis dampens first buyer scheme Only 1,380 applicants since Sept 16 launch

The number of participants in the government's first-car scheme has turned out to be less than expected due to the severe flooding.

A senior Excise Department official said between Sept 16, when the scheme was launched, and Nov 30 the number of applications requesting the excise tax rebate was low at 1,380.

The official, who declined to be named, said the tax rebate requests involved three types of vehicles _ 1,024 passengers cars, 222 one-tonne pickup trucks and 134 double-cab pickup trucks _ for a total rebate amount of 108 million baht.

The widespread flood crisis affecting many northern and central provinces including Bangkok has discouraged participants, said the official.

The damage to the economy from the flooding is expected to be severe, with the National Economic and Social Development Board cutting its gross domestic product projection to only 1.5% from 4.5% expected earlier.

One form the damage will take is in severely reduced purchasing power among consumers.

The crisis has especially hurt the automobile industry by causing disruptions among major car producers worldwide as a result of seven industrial estates serving as production bases for carmakers and auto parts manufacturers being inundated for more than a month.

Some estates have only recently begun cleaning up, while it will take months for each factory to repair the damage to their production lines before they can resume operations.

The Finance Ministry earlier expected 500,000 first-car buyers requesting the tax rebate in the first year of the scheme.

It had estimated the cost of the programme would be as high as 30 billion baht.

Under the scheme, consumers buying their first car under their own name can receive a rebate on the excise tax paid.

The maximum rebate amount is 100,000 baht.

Eligible cars must have an engine size of not more than 1,500cc and be priced at not more than one million baht.

Participants can request the rebate after the ownership transfer. They will receive the amount within a year after applying.