ID :
325010
Wed, 04/16/2014 - 19:13
Auther :

Thailand to become biggest producer of auto parts in ASEAN

BANGKOK, April 16 (TNA) - Thailand has potential to become a largest producer of auto parts in the Association of Southeast Asian Nations (ASEAN). Somkiart Chupakcharoen, President of the Thai Sub-contracting Promotion Association, made the assessment on Wednesday, noting that Thailand's auto industry can increase its production at a historic extent again if the government and the private sector cooperate. Somkiart told journalists that the production increase will meet demand in the ASEAN Economic Community (AEC), set to be formed by 2015, resulting from the implementation of the second stage of the eco-car project, under which 10 manufacturers will invest 138.9 billion baht in producing eco sedans. Somkiart said the eco-car manufacturing will raise Thailand's automobile production capacity by 1.58 million units annually, from 2.4-2.5 million units now. Somkiart acknowledged, however, that the production of automobile parts in Thailand has declined by 20-30 per cent since mid-2013 and he expected the decrease to continue until late this year, as demand has been moving downwards from their normal level after the end of the historically-fastest production increase, boosted by tax rebates from the Thai government's first-car buyer scheme. According to the Thai Sub-contracting Promotion Association president, his association has advised local car manufacturers to introduce automatic technologies in their production processes to cut costs and to improve their product quality, as Thailand’s automobile production standard is now 10 years behind Japan’s due to a flooding crisis in late 2011 and persistent domestic political problems. The president also suggested that local car manufacturers prepare themselves for the formation of the AEC by next year, when regional markets are foreseen to expand by 10 times. (TNA)

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