Thailand may join top 10 automaker group

[Admin]

Thailand may join top 10 automaker group  
The Nation: 5 Jun 2010
Kingdom 'could be among ten top automakers' by 2014
By The Nation
Published on June 5, 2010

Thailand may become one of the world's top 10 automotive manufacturers in 2014, with an expected capacity of 2.95 million units, according to the Thailand Automotive Institute.

Director Wallop Tiasiri noted that one major hindrance blocking Thailand from this achievement is the labour shortage. To accommodate the higher capacity, the industry will need an additional 150,000 workers, he said.

After the institute's board meeting, chaired by Industry Permanent Secretary Witoon Simachokdee, Wallop said yesterday that there was a consensus that the automotive industry will show continued expansion. While the capacity will rise to 2.95 million units in 2014, the actual output will hit 2.1 million, thanks to the investment in five eco car projects as well as expansion of other projects.

Thailand is now the 13th largest auto producer, and with the higher capacity its ranking will surpass those of Spain, Canada and Mexico.

Opportunities abound for all parts makers, but all concerned expect labour shortages, as other industries will also be in need of more workers. The parts makers also have to contest with automotive manufacturers over workers. At present, part smakers need to pay at least Bt300 as a daily wage.

The automotive industry now employs 450,000 workers: 95,000 in the assembly plants and 355,000 in the parts making facilities.

According to Wallop, the institute estimates that an additional 150,000 workers will be required to support the higher capacity in 2014.

The Office of Industrial Economics has urged the establishment of a training centre. Under the JapanThai Economic Partnership Agreement (Jtepa), Japan is committed to support the "train the trainers" programme.

Wallop noted that worker efficiency must be enhanced, while many automakers may opt for greater use of robots. Japan, where 10 million cars are produced per annum, employs only 700,000 workers.

In 2010, Thailand expects to see output rise to 1.6 million units. Now orders are piling up. The institute also believes that output will rise 15 per cent next year, above the normal annualised growth rate of 10 per cent, thanks to the introduction of new models like ecocars.