Thai Export of Auto Parts Expected to Grow 10% This Year

According to the forecast made by the International Trade Bureau of Thailand, the Thai export of auto parts is expected to grow 10 % this year due to the depreciation of Thai bahts.

The total production of cars in Thailand this year is estimated to reach 2.5 million units (last year the units of production were 2.457 million), making it the 9th largest car manufacturing country. It has set a goal to increase the level to reach 3 million units by 2016, which will make it the 5th largest car manufacturing country. From 2012 to 2013, the import value of auto parts in Thailand was USD2 billion. However, with the influence of depreciated Thai bahts, Thailand then turned to export auto parts. The total value of auto parts manufacturing in Thailand was on average THB600 billion (50% for export and 50% for import).

One declaration announced by the Thai government last October shows that, in order to boost the development of the domestic automotive industry, the government will adopt policies to stimulate the investment in production of cars, auto parts, and engines. Automotive industries had to submit the application before 3/31 this year to get the benefit and have to invest at least USD0.2 billion in setting up local manufacturing plants, which should start the production before 2019 and the capacity in the first 4 years must be over 100 thousand units per year.