Nov. 12--Thai auto-parts manufacturers should look for opportunities in China which seeks to become a global automotive production hub within 2020.

Last year, Chinese became the world's biggest automobile production base with 13.8 million units.

Paichit Viboontanasarn, commercial affairs director of the Royal Thai Consulate-General Shanghai, said China was home to 64 million vehicles last year, up from 16 million in 2000. It is expected the figure will rise to 140 million units in 2015 and 217 million in 2020.

"Thai auto parts makers already have a good reputation for quality, making them ideal partners of their Chinese counterparts. Besides, China is shifting from low-cost production to higher quality," he said.

The local supply of auto parts in China today is not enough to meet demand. However, the situation might be reversed over the next five years as China is looking to export the products to the US and Europe. Moreover, the cost of Chinese auto parts is 10-15% lower than Thai products.

According to a local study, more than 20 auto parts offer high potential for Thai makers such as electronic components, high-efficiency engine parts, and energy-saving or eco-friendly parts.

While Thai parts makers are being lured to invest in China, Australians are eyeing opportunities in Thailand.

Richard Reily, CEO of Australia's Federation of Automotive Products Manufacturers, said a group of Australian auto-parts producers and technology providers was now in Bangkok in search of investment deals. They represent the second wave of Australian auto companies to penetrate Thailand after the first was seen a decade ago.

Among the mission's participants are Air International Thermal, Robert Bosch, Commonwealth Scientific and Industrial Research organisation, CEVA Logistics.

Canberra has been supporting local auto parts makers to find international resources in the region such as in China, the Middle East, India, South Korea and Thailand. It will allocate a budget of A$5 billion (150 billion baht) over the next decade to fully support the auto industry from design to showroom sales.

Thailand's automobile and auto parts exports are set to overtake the electronics sector, the champion for more than a decade, in terms of export value in the near future, according to the Federation of Thai Industries (FTI).

Suparat Sirisuwanangura, the FTI deputy chairman and head of the Automotive Industry Club, said the export value of automobiles and auto parts during the first nine months of this year rose 14% to 430.9 billion baht while electronics export value was 452.5 billion baht, and jewellery 254 billion baht.

Automobile and parts exports would likely top 600 billion baht by year-end and rise to 800 next year before breaking the one-trillion-baht mark in 2012.

Total car production in Thailand would be 1.7 million units by year-end. The output is expected to increase to 1.8 million next year and exceed two million in 2012. One-ton pickups will remain the flagship product while eco-cars, which were touted to replace them as the product champion, will start commercial production this year to 2012 by six automakers.

Source: www.bangkokpost.com