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Pattaya Daily News

01 April 2011 :: 09:04:24 am 52327

Thailand’s Auto Industry Unaffected by Japan’s Disasters.

According to the top Thai industry executive, Thailand’s automotive industry is expected to continue growing higher this year even though Japan, which is the main manufacturer and distributor of automotive parts, has been distressed by the recent earthquake and tsunami.
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Thanathorn Juangroongruangkit, executive vice president of Thai Summit Autoparts Industry Co, said the production of new vehicles in Thailand is expected to reach 1.8 million units this year.
Thailand is currently in high demand for local vehicles and is predicted to be increasing due to the country’s growing economics, which will contribute to the growth of the automotive industry.
In addition, compare to other countries Thailand has a stronger basic infrastructure, which means that Thailand has the potential to become ASEAN’s automotive production center.
International investors, especially the Japanese, choose Thailand as their first option in ASEAN to be used as their production base.
However, Thailand needs to increase their research and development of automotive technology as well as increasing the knowledge and skills of Thai employees.

Japan supplies components, car and electronic parts to many factories in Southeast Asia as well other products for export, including back to Japan.
The supply chain was interrupted when the earthquake and tsunami struck Japan’s northeast region, damaging a nuclear plant and forcing many factories to cease their production.
Production at a Nissan Motor plant in China had dropped dramatically two weeks after Japan’s twin disasters disrupted the supply of key auto parts, sources with the company said Saturday.
Workers at a Dongfeng Nissan plant in central China’s Hubei Province told reporters that Saturday’s production assembly has dropped to less than one-third of the normal level.
“We used to assemble 304 cars a day, but today our plan is set at 82,” said a worker who declined to give his name.
“And our work time was cut to half a day to accommodate the production,” he added.
Japanese automotive joint ventures in China get 60 to 70 percent of their parts locally, while key parts like engines and transmissions are imported from Japan.

Reporter By: http://thailand-business-news.com

Photo : Internet   Category : Announcement News

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