Auto-parts makers renew call for testing centre

President Achana Limpaitoon said the association would push the government to reconsider the aborted plan to establish an parts-testing centre, as it would strengthen the competitiveness of the country’s automotive sector.
“We are preparing to discuss with both the government and the private sector the possibility of reviving the plan. It’s time Thailand had its own testing centre,” she said, adding that small and medium-sized suppliers of auto parts were suffering from a lack of testing facilities. Large companies have their own research-and-development as well as testing centres, she said.
Achana said that if the country is serious about become a regional auto hub – or the “Detroit of Asia” – it needed a parts-testing centre. Details of investment in such a centre would depend on the government. Initially, the government and private sector would invest equally, she said.
Local parts suppliers need to adjust to developments in the industry, now that major carmakers have decided to use Thailand as their production base, she said, adding that most small and medium-sized enterprises currently sent finished parts to be tested in Japan, resulting in higher costs and delivery times. The auto-testing centre at Bang Pu, managed by the Thailand Automotive Institute under the Industry Ministry, is overloaded.
“We believe a testing centre would help Thai auto-parts SMEs and restore investors’ confidence after the country was hit by floods last year,” Achana said.
She said the country would have to increase the capabilities of its parts suppliers in preparation for the upcoming launch of the Asean Economic Community. Indonesia, Thailand’s major rival, has launched an eco-car project that is very similar to the Kingdom’s. Meanwhile, Burma is opening up to foreign investment, a move that is expected to encourage Japanese parts makers to shift some investment in low-technology parts there, she said.
However, Masao Takagi, former secretary-general of the Japanese Chamber of Commerce (JCC), said that according to its post-flood survey of Japanese investors, about 88 per cent of 300 respondents planned to stay where they are, while 11 per cent said they would move to a new location within the Kingdom. Only 1 per cent said they would shift to other countries.