BANGKOK, 27 May 2015 – Reduced purchasing power has prompted Thailand Automotive Institute (TAI) to lower its car production target for 2015 to 2 million units, albeit expressing confidence that the country will become the 8th largest automobile manufacturer in the world within 5 years.
Vichai Jirathiyut, president of the TAI, said on Tuesday that the production target had been lowered to 2 million units from the previous target of 2.15 million units. Of the new target figure, 1.2 million units are expected to be produced for export and the rest– 800,000 units — for sale locally.
According to Mr. Vichai, the Thai economy’s slowdown and the low prices of agricultural products have diminished people’s purchasing power. Nonetheless, the institute still maintains its expectation for Thailand to produce 3 million cars a year by the year 2019. Mr. Vichai indicated that the expected growth in the number of units manufactured would be driven by the production of energy-efficient eco-cars.
The TAI president also commented on the progress of the automobile testing complex planned by the government, saying that the Ministry of Industry had negotiated to use 4,000 rai of land under the jurisdiction of the Ministry of Natural Resources and Environment as the site for the complex. A more detailed plan for the site is expected to be drawn up within three months.