The Thai auto-parts manufacturing industry expects to enjoy 20-per-cent growth this year, due to strong demand both at home and overseas.
"We have seen further improvement in the automobile sector in the Kingdom after the delays in vehicle delivery affecting major Japanese brands resulting from the earthquake and tsunami disaster in Japan. It [Japanese production] is expected to resume fully by the end of this year," Achana Limpaitoon, president of the Thai Autoparts Manufacturers Association, said yesterday.
In the first six months, the industry saw a 15-per-cent surge in sales of auto parts, split evenly between domestic consumption and exports, she said.
According to the Department of Export Promotion, auto-parts exports rose 16.4 per cent year on year to Bt138 billion during the period.
Thailand's top five auto-parts export markets in the first half were Indonesia with Bt20 billion, up 28.79 per cent year on year; Japan, unchanged at Bt16.7 billion; Malaysia with Bt10 billion, a drop of 3.64 per cent; Vietnam with Bt9.7 billion, up 34.6 per cent; and Brazil with Bt8.77 billion, a rise of 67.88 per cent.
"Our key export markets are mainly in Asia, so we strongly believe that the financial crisis in the United States and European countries may not have a direct impact on the Thai auto-parts industry," she said.
For this reason, Achana expects to see 20-per-cent sales growth this year, from the Bt361 billion generated last year.
"However, I am a bit concerned about the new government's policy to raise the daily minimum wage to Bt300 for labourers, as this would affect manufacturers' production costs next year." She said such a move was estimated to imply at least a 10-per-cent hike in overall production costs for auto-parts makers.
As the industry's representative, she urged the incoming government to work closely with all related sectors that might be affected by such a policy.
By Watchiranont Thongtep
The Nation
Published on August 9, 2011