The export of completely built vehicles from Thailand rose 25% in Q1 of 2008 due to rising global demand for Thailand’s automobiles, free trade agreements and rising investment.
According to the automobile industry club of the Federation of Thai Industries, export of completely built vehicles from Thailand rose 25% in the first quarter of 2008 against the same period last year, surpassing the domestic unit sales, as reported by bangkokpost.
The federation also disclosed that auto manufacturers in Thailand shipped 247,051 units for 109.33 Billion Baht (US$ 3.4 Billion) overseas in the first quarter of 2008. It was 25.21% YOY higher. Besides, the export of engines doubled in terms of value in the first quarter of 2008 to 5.75 Billion Baht (US$ 0.18 Billion), while that of auto parts increased by 34.5% to 40.85 Billion Baht (US$ 1.26 Billion). Spare parts export rose by 33.9% to reach 2.84 Billion Baht (US$ 0.089 Billion).
The chief reason for high growth in auto export in Thailand is continuously rising global demand for Thailand’s automobiles. As Thailand is consolidating its position of a leading automobile manufacturing country in Southeast Asia, it is successfully increasing its global presence as an export and production base, particularly for pick-up trucks.
Moreover, the double-digit growth in automobile export in the first quarter of 2008 is due to rising influence of Thailand as a leading automotive manufacturer and supplier in the region. The benefits mainly came from Free Trade Agreements (FTAs) with countries including New Zealand, China, Australia and India. As a result, the demand for Thailand’s auto parts and automobiles increased, which, in turn, increased the automobile export.
Moreover, many auto manufacturers mainly depend upon their Thai operations to meet the regional and domestic demand. Besides, several renowned auto-manufacturing companies are establishing R&D centers in the country, facilitating marketing and export activities from Thailand.
Also, these R&D centers support the global operations of their respective companies in Thailand. Thailand is giving an extensive support to auto part makers that are further boosting growth in the auto industry. It also gives an edge to Thailand over its competitors in exporting vehicles.
According to a Research Analyst at RNCOS, “The Thai government may help in broadening Thailand’s specialization from pick-up truck manufacturing to other vehicles. However, as the country offers attractive services, it is expected that Thailand will see more investment in its auto industry to produce key components missing or not produced in enough quantity in the country.”
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