Thai used car parts markets flourishing Bangkok Post: 5 Apr 2011 Time for an overhaul?Thrifty motorists know where to look to find second-hand car parts that combine Japanese quality with big savings.Rising oil prices and higher living costs may lead you to think twice about buying genuine spare parts for your car when you have an accident or carelessly let the radiator run dry by forgetting to check the coolant level.
Siang Kong outlets have become a vital source where car owners or car technicians can find cheap used parts, all imported from Japan.It would be even worse if you checked your motor insurance to find it had expired two months earlier. Without insurance, you may be shocked by unexpectedly expensive parts from garages or service centres.Even if you were rich, it could take a long time to find a suitable part for your favourite vintage car.
But a smart spender always has a smart way out.
There are still many places selling used spare parts, particularly Siang Kong at Talat Noi in Bangkok's Samphanthawong district.If Sampheng is the outlet of Bangkok's Chinatown, Talat Noi is the backyard factory. The area was originally a hub for Chinese blacksmiths who produced steel parts and tools. After World War II, the blacksmiths began adopting mechanical skills and dealing in second-hand parts. Trade mushroomed around the Siang Kong shrine and even the name "Siang Kong" has become a generic name for the business of selling second-hand parts.
Business has been flourishing for decades and has spread from its humble origins to many areas of Greater Bangkok, including Pathumwan, Laksi, Navanakorn, Si Mum Muang, Rangsit, Wang Noi, Nong Khae, Bang Na-Trat Road, Bang Bon and Buddhamonthon, and even provincial areas.Siang Kong has become a vital source where car owners or car technicians can find cheap used parts, all imported from Japan. You can find almost every type of part for cars, bicycles, motorcycles, agricultural vehicles or even small boats. Used parts for Japanese and European branded cars contribute the biggest proportion.
Amnat Hemmaphum, owner of VNC Motor in Siang Kong City on Bang Na-Trat Road, says all parts in his store were bought from auto salvage auctions by his partner in Japan and shipped to Thailand via Klong Toey port. About 80% of products in his store are used car parts, while the rest are front clips.
Mr Amnat says Siang Kong outlets are popular among technicians or garages that look for cheap parts for repairs, while motorists often come to search for the right parts to fix, modify or decorate their vehicles.
While big stores such as VNC function as a direct importer, smaller outlets such as Dek Som Boon Shop usually buy parts from major importers or dealers as they cannot afford trips to Japan for auctions.
Ngow Saejea of Dek Som Boon admits Siang Kong stores are very different these days. Better shipping systems make it easier for importers to bring spare parts from Japan to Thailand. More supplies lead to lower prices.
"More goods mean more intense competition," said Mr Ngow. "Customers have a lot of stores to choose from. They are becoming more selective. They usually compare price and quality before buying any products."
Both stores agree that about 70% of clients are frequent customers. To maintain this customer base, the stores need to strictly control the quality of all goods. Mr Amnat says damaged spare parts are immediately removed from shelves.
Japan is widely accepted as the best place to buy salvaged or used cars and parts because cars there are carefully maintained, while Japanese roads are usually very good. Repair costs in Japan are very high, so customers may buy a new car rather than fix a damaged one.
Japan's auto salvage sales also offer low-mileage cars in good condition as the Japanese government discourages people from owning cars for more than five or six years. Drivers have to pay more tax for older vehicles..
All used spare parts at Siang Kong are disassembled in Japan to avoid import duties in Thailand as complete cars are subject to a high luxury tax equal to 200% of the car's value.
Siang Kong is not the only channel for consumers to find used parts. Krisaphrom Loungtoomyut, a former merchant at Chatuchak Market, sells used spare parts over the internet. Online shopping is becoming more popular as customers have no need to travel to hot, oily Siang Kong stores, he said.
Mr Krisaphrom is a regular customer of many Siang Kong stories that let him buy many spare parts at a lower price.
"Selling used parts online can generate a satisfactory income. I don't think it's necessary to go to Japan for auto salvage as it's too costly and involves many complicated processes," he said.
There are also private companies that tap into the growing used parts market. Union Auction is a medium agency that arranges auctions for domestic salvaged cars. Most of the stock auctioned by the company comes from domestic auto finance service centres.
"Demand for used and salvaged cars increased slightly last year as we saw more people attending the auctions," said Rattakhet Netprapa, assistant to the managing director. "Customers are starting to think of the company as another interesting source."----------------------------------------------------
http://www.bangkokpost.com/business/economics/230348/time-for-an-overhaul
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