Thailand FTI Press Release in full:
Bangkok – 23 November 2012: The Ministry of Industry, in collaboration with the Federation of Thai Industries (FTI) represented by the Automotive Industry Club and the Auto Parts Industry Club; the Thai Automotive Industry Association; the Thai Auto Parts Manufacturers’ Association; the Office of the Board of Investment; and the Thailand Automotive Institute, announced a milestone for the Thai automotive industry of reaching annual production of more than two million automobiles for the first time. They also revealed their commitment to boost investor confidence and set a goal to produce three million cars per year by 2017.
According to Mr. Vitoon Simachokdee, Permanent Secretary for the Ministry of Industry, “The Thai automotive sector is one of the country’s major strategic industries. The Ministry of Industry has played a vital role in establishing the policy and strategy for the integrated development of the automotive industry, leading to tremendous annual value-added benefits for Thailand. These benefits include growing exports, increased employment, technological development and many activities to boost the potential development of the automotive industry and related industries all through the supply chain.
The Ministry has defined the policy to promote and support investments, encouraging investors worldwide to build automotive and auto parts production bases in Thailand and driving for innovative developments in tandem with the globalization trend. Our ultimate goal is to strengthen the Thai automotive industry as part of the country’s economic and social development plan while forming a balanced basis for the sustainable development of the country as a whole.
“Thailand’s automotive and auto parts industries play a very significant role in the generation of national income and added value. The companies in the automotive sector are also major players in the social development of Thailand, employing more than 800,000 skilled laborers with the subsequent transfer of high-technology production techniques and knowledge. Thailand’s entry into the ASEAN Economic Community (AEC), which is a large market, will present a significant opportunity for Thai auto manufacturers. The government will set a strategy to achieve the goal of producing more than three million cars by 2017,” said Mr. Vitoon.
Mr. Payungsak Chartsutipol, Chairman of the Federation of Thai Industries, said, “The Thai automotive industry has grown steadily with continual support from the government and other relevant private organizations, all of which have worked together to drive the entire industry. The government has set the policy and direction that has been implemented by the private sector to enhance the industry’s competitiveness in the global market, making Thailand one of the world’s top 10 automobile production bases.
2012 marks a golden year of the Thai automotive industry as we celebrate the production of more than two million cars with an export value of more than one trillion baht, topping all exports from Thailand. The product champions are pickups and eco cars, and auto parts were also shipped globally. With such positive trends in mind, the automotive industry anticipates that Thai automobile production will soon reach more than three million units,” added Mr. Payungsak.
Thailand’s automotive industry helps to develop and strengthen Thailand
For more than 50 years, the Thai automotive industry has provided economic, technological, social and environmental benefits for the country.
Economic benefits: The value created by the Thai automotive industry accounts for 10% of Thailand’s GDP. Thailand is the world’s 6th largest exchange earner in automobiles and auto parts and will be among the world’s top 10 automotive production bases, given its 2012 production output. Accumulated automobile exports for 2012 are anticipated to more than one million units with total value of more than one trillion baht, comprised of automobile exports of 600 billion baht and auto part exports of 400 billion baht. The Thai automotive industry is the largest sector in terms of generating foreign income for the country and has developed a large and solid base of related local industries. Currently, Thailand has more than 2,500 manufacturing plants for vehicles, auto parts suppliers and related industries. So far during 2012, there have been applications for promotional privileges in the automotive segment, with a total value of 202,800 million baht, up 95% from last year.
Technological benefits: Technology is a key factor in the development of Thailand’s automotive sector. Automotive and auto parts manufacturers have established nine research & development centers in Thailand, which has led to the increasing transfer of production and industrial management expertise. The Thai automotive industry has successfully raised production standards for its made-in-Thailand brands to meet leading international quality certifications and levels.
Social and environmental benefits: The Thai automotive industry has played a major role in enhancing the quality of people’s lives by creating employment and improving the skills that are the heart of the production process. The industry has made a major contribution to the development of transportation in Thailand and has spread prosperity to many communities. On the environmental side, the automotive industry is taking the lead in promoting the awareness of environmental protection. Automobiles and auto parts are produced to meet international Euro and emissions standards. Other highlights include the development of environmentally-friendly technologies and social initiatives that have been implemented on a continual basis to protect communities and the environment.
To celebrate the milestone, a major celebration event called “The Thai Auto 2 Million Celebration: The New Dimension Drives The World” will take place on November 30, 2012 at the Royal Jubilee Ballroom, Challenger Building, Muang Thong Thani. Prime Minister Yingluck Shinawatra will chair the event and deliver a keynote address. The Thai public can learn more about the Thai automotive industry’s potential at a striking exhibition featuring the 50-year history of the industry and its next step into the global arena. The exhibition will be at the 29th Thailand International Motor Expo in front of the Challenger Hall, Muang Thong Thani, between November 29 and December 10, 2012.