Bangkok : October 24, 2008 - Automobile production to grow 10% next year. Automobile output should increase 10% next year, according to the director of the Thailand Automotive Institute, Vallop Tiasiri.


Vehicle production should reach 1.5 million units next year from 1.43 million units this year, as export growth is expected to push production expansion.

Exports next year should reach one million units, an increase from this year's forecast of almost 800,000 units, he said.

''However, growth in the domestic market will not be as exciting as local political conflict holds back consumer confidence,'' Mr Vallop said.

This year, the industry's total output is expected to increase 10% to 1.43 million units from 1.29 million last year.

The export market claims 56% of vehicle output and that market should grow over 20% this year while the domestic market is expected to have less than 10% growth. Next year, exports will have a 60% share.

''It is important to notice that even in a slow economy or during the crude price crisis, our automobile industry has never stopped growing,'' he said. ''This is because we are competitive and able to launch new products in time to satisfy market demand.''

He expects the one-tonne pickup to remain a bestseller next year and hopes the new eco-cars will be a trendy choice for fuel-efficient consumers. The first eco-cars will be available next October.

''That is the period when manufacturers will be able to benefit from excise tax privileges, so whichever manufacturer can serve the eco-car market first will have the advantage,'' he said.

Manufacturers remain tight-lipped on their eco-car development, but Toyota, Nissan, Mitsubishi and Honda already have their plants ready.

''Suzuki is done with land purchasing but has not yet set up their plant while the Indian-based Tata Motor is still looking for land,'' Mr Vallop noted.

The institute is preparing to train 100,000 skilled labourers to serve expansion into eco-car manufacturing.

Thai Auto Parts Manufacturers Association (Tapma) president Prasartsilp On-Aht led members in a meeting with Industry Minister Pracha Promnok to call for training support. The automobile industry employs over 300,000 workers.

Another 100,000 personnel should join in the next seven years when eco-car production should be at full capacity.

''The personnel should come from new graduates and workers from other industries,'' Mr Prasartsilp said.

Mr Vallop also expressed confidence that the industry's earlier goal to produce 1.8 million units by 2011 is achievable, despite the global economic slowdown.

''This forecast is possible as the downturn in the global economy and domestic political problems were taken into consideration at the time of evaluation,'' he said.

[Source : Bangkok Post]