Automotive exports to recover in Q2
Shipment of automobiles and parts, one of the country's top-three exports, will return to growth in the second quarter of the year, faster than expected as manufacturers have rapidly recovered after the severe floods last year.
In an interview with The Nation, Vuthichai Duangratana, deputy director-general of the Commerce Ministry’s Department of International Trade Promotion, said export of vehicles and parts was expected to grow by 11 per cent this year, after shipments dropped by 7.91 per cent to US$12.34 billion (Bt377 billion) last year.
“Shipments of automobiles and parts have recovered faster than expected. Many manufacturers who were hit by floods have restarted production, which will ensure that exports return to growth in the second quarter,” Vuthichai stressed.
Previously, the department projected that exports would not return to growth until the second half, as the factories of major auto-makers and supply chains were seriously flooded.
The positive outlook is attributed mainly to higher demand for pickup trucks and eco-cars in emerging markets.
Shipments to Brazil rose last year by 47.46 per cent, to Vietnam by 29.04 per cent, to South Africa by 24.88 per cent, and to Indonesia by 20.50 per cent.
Vuthichai said Thailand had become the centre of eco-car production thanks to high confidence among foreign investors for growth of this industry.
Amid rising fuel prices, production of eco-cars is expected to increase significantly from now on. Investors will continue to increase production of these vehicles in the Kingdom as there is strong demand among Thai consumers, while Thailand also has high capability to distribute them to other countries, Vuthichai said.
According to the Federation of Thai Industries, production of eco-cars in Thailand reached 100,000 units last year, up from 60,000 in 2010. Eco-car production is projected to reach 200,000 units this year.
The department will host the fifth Thailand Auto Parts and Accessories (TAPA) trade fair next month. With vehicle sales dropping worldwide because of skyrocketing oil prices, eco-cars and hybrids will take centre stage at this year’s fair, Vuthichai said.
The TAPA will run from April 26-29 at the Bangkok International Trade and Exhibition Centre (Bitec) in Bang Na. The exhibition, which promotes local auto-parts manufacturers in the global market, will showcase the latest developments and technologies in alternative-energy cars, parts and components.
“Amid high competitiveness in the sector, Thailand will promote eco- and hybrid cars to emphasise the country’s role as the region’s automobile-production hub,” he said.
This year’s event is aimed at not only promoting Thai-made parts and accessories, but also supporting the government’s programme to promote eco-car production.
TAPA 2012 is expected to attract at least 16,000 visitors, up from 9,481 last year. A total of 649 booths from 271 companies will be set up at the event. The fair is expected to generate more than Bt470 million in immediate orders, up from last year’s Bt435 million.
