23 August 2010 - Our northern neighbours Thailand were treated to good news when it was revealed that auto exports from the Land of Smiles reached a record high in July. Exports totalled 87,605 units last month, which is 140% more than July 09 figures. These vehicles were valued at 39.8 billion baht, up by 129% year-on-year.
Auto exports from Thailand reached a record high last month, with orders up from all regions, especially Asia, according to the Federation of Thai Industries' Automotive Industry Club.
Thai-built vehicle exports increased by 140% year-on-year to 87,605 units. These were valued at 39.8 billion baht, up by 129%.
Cumulative vehicle exports in the first seven months of the year rose by 116% year-on-year to 505,783 units worth 235 billion baht, up by 87%.
"Last month's export success was due partly to the Customs Department's streamlining of regulations and procedures to accommodate vehicle exports," said spokesman Surapong Paisitpatnapong.
In addition, the Asean Trade in Goods Agreement, which took effect in May, has reduced transaction times and costs of doing business in the region.
Thai-built vehicle exports to Asia jumped by 137% year-on-year to 27,558 units in July, making the region the largest export market for Thailand. Cumulative vehicle exports to Asia in the first seven months surged by 53.7% to 145,745 units.
Thailand's automobile exports to Asean countries have been big beneficiaries of the elimination of tariffs under the Asean Free Trade Area (Afta) since January, said the Kasikorn Research Center (KResearch).
It cited Commerce Ministry data showing Thai vehicle exports to Asean markets were worth US$1.49 billion in the first half of the year, accounting for 24.4% of total automobile export value.
Asean became the largest market for Thai passenger cars, at $1.15 billion in the six months to June, a 138% year-on-year increase.
Apart from Afta's tariff waiver helping to expand Thai-built vehicle exports to Asean, the research house said foreign investment trends in the auto industry, especially in the small car segment, favoured Thailand. The country is not only a regional hub for automobile production, but also enjoys several advantages over its neigbours, such as skilled human resources, long-established related industries and well-developed infrastructure. "Another point is that the capacity for passenger car production in each Asean country at the moment cannot meet the respective demand that boosts Thailand's export chances to Asean," said KResearch.
Thanks to increased vehicle exports and rising domestic sales, Mr Surapong said total automobile production in July increased by 94.4% year-on-year to 145,771 units, while cumulative production in the first seven months also soared 97.1% to 914,765 units.
Local automobile sales climbed by 52.2% year-on-year last month to 65,672 units thanks to improved economic conditions and government stimulus spending that lifted consumer confidence.
Toyota Motor Thailand recently forecast the local automobile market would boom this year with record sales of 750,000 units.
Malaysia’s Proton is seventh in the passenger car chart with 3,684 units, or 2% market share. Not bad when those above it are all established Japanese players and GM, which has its regional base in the country. Proton, who set up shop in Thailand at the end of 2007, sold more cars than Ford, Mercedes-Benz, BMW and Suzuki.
Source: BangkokPost
