Issue 20

The president of the Thai Autoparts Manufacturers Association (TAPMA) reveals its plan to accelerate the preparation of the Thai autoparts industry for the upcoming ASEAN Economic Community (AEC).

Despite external factors, TAPMA President, Atchana Limpaitoon gave a healthy prognosis for the Thai autoparts industry in 2015.
The head of the Thai autoparts body added that she did not expect this to have any effect on the production of vehicles, which is expected to rise to 1.85 million units.
“The expansion of auto industries is due to our strong economic and financial condition,” she added. “The autoparts industry accounts for 12% of GDP, which helps boost Thailand’s economy. I am confident that the autoparts industry will grow by 8% this year.”

According to Limpaitoon, Thailand enjoys many advantages over neighbouring countries. “The country serves as a gateway to Asia and we have good infrastructure, as well as transportation and logistics systems which is attractive to foreign investors,” she said. “Apart from the auto parts industry, other industries such as jewellery and tourism also play a significant role in stimulating economic growth.”
She also believes that the emergence of the AEC at the end of 2015 could alter the auto industry landscape considerably. “There are challenges, especially with labour costs,” she said. “Recently manufacturers of autoparts from India have shown an interest to enter the Thai market, which could have an effect on the labour market.”

Limpaitoon urges Thai entrepreneurs to develop their skills and brand identity in order to compete on a large scale. “They should look for opportunities to expand their customer base in neighbouring countries, especially Indonesia, which is considered to be a potential market for autoparts.”
Thailand exported 106,591 vehicles in November 2014, an increase of 11% compared to the same period the previous year. Export value totalled 47.8 billion baht (US$1.46 billion) up 7% from November 2013.
“With over 200 million residents and political and economic stability Indonesia [is] our potential competitor,” said Limpaitoon. “However, we have advantages in regard to labour skills and knowledge, which need consistent development.”
For more information, visit www.thaiautoparts.or.th
Words by: Manisa Phromsiripranee