Thailand To Promote Export Of Pickups, Passenger Cars

[george]

Thailand to promote export of pickups, passenger cars

BANGKOK: -- Soaring worldwide oil prices are expected to hurt the automobile industry, but Thailand's automotive industry is looking to benefit from the situation by widening a niche market and promoting the expanded exports of pickups and passenger cars for greater market penetration abroad.

Ninnart Chaitheerapinyo, honorary advisor of the Thai Automotive Industry Association and vice president of Toyota Motor Thailand Co., Ltd., said during a programme on Modernine TV that it would take a long time for the automotive business in the domestic market to become saturated as the ratio of cars to population is one to only nine persons here, while exports of one-tonne pickup trucks from Thailand can continue to grow during the next five years.

Admitting that it is very difficult for Thailand to produce 1.8 million units of cars annually by 2010 due to rising oil prices in the world, Mr. Ninnart said it should give a good opportunity for Thailand to consider strategy on developing auto industry and ways to boost competitiveness, especially on exports of one-tonne pickup truck in which the country is now exporting about 100,000 units annually.

Wallop Tiasiri, director of the Thailand Automotive Institute, said the kingdom is now considered as an important base worldwide for production of one-tonne pickup trucks as it has the capacity to produce about 900,000 units a year compared to 1.2 million units currently produced worldwide.

A five-year auto industry development plan, starting in 2007, calls for increased production of small energy-efficient passenger cars using either reduced amounts of gasoline or alternative energy sources. Thai manufacturers must plan tp boost exports, Mr. Wallop said, adding that the Institute would prepare details on expanding auto exports as well as promoting exports of small passenger cars in the near future.

There is need to use as much as 70-80 per cent of locally produced spare parts for small passenger cars like the current one-tonne pickup truck to make their prices competitive in the world market, Mr. Wallop said.

At present, around 20-50 per cent of spare parts made in this country are used in small passenger cars, he added.

--TNA 2006-1029