Auto Production In Thailand Is Expanding

Autoparts Report,  June 2, 2000  

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World major carmakers are expanding their production in Thailand, as the auto industry has become one of the fastest improving sector in the Thai economy, according to sources in Thailand.

Toyota, one of the leading auto makers from Japan operating in Thailand, has announced that it will increase its production capacity in Thailand from 40 to 60 percent of total capacity in 2000.

General Motors has invested $750 million to establish a plant in Thailand, aiming at penetrating the Thai market, of which Japan currently holds 90 percent.

Ford said it plans to export half of its total production in Thailand to overseas markets. The company will use 70 percent locally-made components in its production.

For European auto makers, BMW this year will increase its production in Thailand to 10,000 cars after investing $35 million in establishing its production plant in Thailand.

In the first quarter of this year, Thai domestic auto sales volume has increased 58 percent. And in April, a total of 20,728 vehicles were sold, up 48 percent year-on-year.

By the end of this year a total of 260,000 cars are expected to be sold, which will be a 19 percent increase over last year's total sales of 218,330 units..

COPYRIGHT 2000 Ron DeMarines
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