BANGKOK, 27 July 2011– The Thailand Automotive Institute (TAI) is targeting to increase the country’s car production capacity to 2.5 million units per annum within the next five years through the implementation of four strategies.
According to TAI Director Wanlop Tiasiri, the TAI has approved the five-year strategy (2012-2016), comprising promoting good environment for the Thai automotive industry, increasing auto parts production efficiency, creating engineering and test bases as well as upgrading the management system.
The strategy is drawn up after the TAI has evaluated the direction of the Thai automotive industry and opportunities in the ASEAN Free Trade Area. The TAI expected that the Thai auto production will hit the goal of 2.5 million units annually by 2015, compared to the expected output of 1.8 million units this year.
The increase is expected to be seen from the production of pick-up trucks and passenger cars, including eco-cars. The TAI will try to raise the output to 2 million units in 2012.
Despite the positive projection, a major impediment to the Thai automotive production is the economic condition, which can downgrade purchasing power of consumers; nevertheless, the production target can be achieved provided that Thai and global economy expands smoothly.
Mr Wanlop said the incoming government’s policy to increase the daily minimum wage to 300 baht should not have impact on the automotive industry because automakers at present are paying wage at a higher rate.