Thailand is striving to become the automotive production hub of Asia by 2010, according to Commerce Ministry permanent secretary Karun Kittisataporn.

Speaking yesterday at the opening of the Thailand Auto Parts and Accessories (TAPA) 2006 exhibition, he said this would be the second major milestone for the local auto industry. The first was passed in November last year when the industry achieved the production of one million vehicles in a year, making it the world's 14th-largest vehicle manufacturer.

TAPA 2006 has been organised for the second successive year by the Commerce Ministry's Export Promotion Department, and is being held at the Bangkok International Trade and Exhibition Centre.

Karun said the country would be producing more than 1.8 million automobiles per year in 2010, and 800,000 of them will be exported. At that stage, Thailand will be ranked as the world's 10th-largest vehicle-maker and the sixth-largest automotive exporter.

The value of the Kingdom's automobile exports this year is expected to be US$7.44 billion (Bt279 billion), an increase of 35 per cent over 2005. In the first eight months the value was $4.37 billion, a 26.63-per-cent increase over the corresponding period last year.

Major export destinations for Thai vehicles are Australia, Saudi Arabia, Indonesia, the United Kingdom, Singapore, Oman, the United Arab Emirates and Germany. New markets with high growth rates include Kuwait, Qatar, Turkey and the United States.

The value of this year's exports of auto parts and accessories is expected to be $6.2 billion, increasing by 35 per cent - the same rate as automobile exports - over the 2005 figure. In the first eight months, the export value of auto parts and accessories was $3.43 billion, up 13.41 per cent over the corresponding period last year.

New export markets for Thai auto parts and accessories include Cambodia, Switzerland, the UK, Belgium and Australia, while major markets are Japan, Malaysia, the US, Indonesia, South Africa, the Philippines, India, Vietnam, Pakistan and Singapore.

Karun said more than 346 manufacturers are taking part in TAPA 2006, compared to only 169 exhibitors last year. It has 640 booths, double last year's number, covering 9,600 square metres of floor space. The fair has more than 5,000 pre-registered visitors.

Steven Leong, a buyer from Tong Yong Industries, a Malaysia-based automotive rubber and plastic firm, said he lived in Thailand five years ago and witnessed the positive changes in the country's automotive parts industry. He joined the fair because his company wants to see new products and technology.

"Compared with the American accessories show, TAPA is much smaller. However, it seems to be a good start for Thailand to become the automotive hub of Asia," he said.

An exhibitor, Adisak Thamvisead, director of Pradit Hydraulic Part Co Ltd, said the fair would lead foreigners to realise the potential of Thai industries, not only in automotive manufacturing, but also in making other machinery parts.

He said there was a possibility that Thailand would become the automotive parts and accessories hub of Asia if the government can support small- and medium-sized industries and control the price of raw materials.

Another exhibitor, Ayaz Shah, president of Canada-based Pacific Alliance International Marketing Ltd, said he had learned of the TAPA 2006 fair on the Internet and decided to take part because his company is looking for distributors in Asia.

Chalida Ekvitthayavechnukul

The Nation