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December domestic auto sales, production drop year-on-year

Thailand’s total domestic automobile sales in December fell by 41.40 percent to 54,575 units year-on-year, but increased by 109.35 percent compared to the previous month, according to the Federation of Thai Industries (FTI).

Spokesman Surapong Paisitpattanapong of the FTI Automotive Industry Club said Wednesday that the rise in auto production was because almost all automobile plants have resumed operations and have begun delivering vehicles to customers after Thailand’s devastating floods, though the plants are not yet fully operational.

Overall auto sales last year, from January through December, were recorded at 794,081 units, down 0.80 percent compared to 2010.

Meanwhile, December auto production dropped 27.64 percent to 99,426 units compared to the same period in 2010, but rose by 319.61 from November 2011.

Surapong reported that auto production in 2011 totaled 1,457,795 units, shrinking by 11.40 percent, year-on-year.

The country’s flood crisis in late 2011 halted auto production as the mega-floods hit the central provinces, where many industrial estates are located, which immediately led to a shortage of parts to supply the country’s automobile assembly plants.

The widespread inundation slashed auto production in October and November, falling in November to a record low of 23,695 units for the preceding 151 months

Not since mid-1999 - more than 12 years ago - had Thailand’s automotive production been so low.

In a related development, Japanese leading automaker Toyota Motors reported that flooding in Thailand and the devastating March 11 tsunami in Japan affected its auto production in Thailand, dragging its 2011 overall sales to 794,081 units, a drop of 0.8 percent year-on-year.

Kyoichi Tanada, president of Toyota Motor Thailand Co., Ltd., said the company was confident that the Thai auto market could continue to expand to meet the demand of the markets which will lead to competition among automakers as well as government policy supporting the automotive industry.

Tanada projected Thai auto sales to grow to 1.1 million units, marking the first time in Thailand’s auto sales history that the volume will exceed one million units.

Meanwhile, Toyota Motor Thailand projected its total auto sales in 2012 to reach 450,000 units, including 214,000 passenger cars and 236,000 commercial vehicles, he added.

Tanada asserted that Toyota Motor Thailand will continue expanding its investment here and will build a new auto manufacturing plant at Gateway City Industrial Estate in Chachoengsao province, named Gateway Plant 2, and will resume operations at its TAW factory, which manufactured the Toyota Fortuner.

The combined production capacity of the two factories will reach 88,000 units, with an investment value of Bt8.2 billion.

Meanwhile, the STM factory, which produces engines for Toyota vehicles, will also expand its production capacity.

All expansion is to meet rising market demand, the Toyota Thailand president added. (MCOT)
 


Cabinet approves Bt380bln investment budget for infrastructure projects in North

Thai Cabinet earlier this month approved in principle a Bt380 billion budget to invest in 128 infrastructure projects in the northern region.

Deputy Prime Minister and Commerce Minister Kittirat Na Ranong said after the year’s first mobile cabinet meeting that the cabinet has given a green light for a budget towards infrastructure development including a Bangkok-Chiang Mai high-speed electric train project, a mass transit system project and a flood prevention system project in the region.

Kittirat added that agencies relevant to each project were assigned to propose an investment budget to the screening committee and the Strategic Committee for Reconstruction and Future Development in order to scrutinize the appropriate budget for each project, explaining that the country needed to invest around Bt2 trillion for long-term infrastructure projects for the whole country.

Meanwhile, Government Spokesperson Thitima Chaisaeng said that the cabinet approved the speeding up of building sluice gates and repairing of destroyed river banks as a short-term investment for flood prevention in the northern region of Thailand.

Regarding the long-term projects in the North valued at Bt380 billion, Ms Thitima explained that the projects included a water resource investment project worth Bt15 billion, the trans-provincial road development project valued at Bt25 billion, a project on the mass transit and rail development worth Bt311 billion, as well as the tourism development project worth Bt10.5 billion.

However, the investment budget for each project will be considered again, the government spokesperson added. (MCOT)
 


AoT exempts charges to help flood-affected airlines

The Airports of Thailand (AoT) on Friday announced that it would exempt landing and parking charges for aircraft to help airlines affected by the flood crisis at Don Mueang airport last year.

AoT closed Don Mueang airport temporarily on Oct 25, as flood waters flowed onto the runways. After being flooded for almost two months, AoT is repairing airport infrastructure and the facility is scheduled to reopen on April 1.

The agency, which manages, operates and develops airports in Thailand, said the charges would be retroactive from Oct 25 until March 2012 before Don Mueang resumes normal operations.

The exemption would cost AoT some Bt110 million in revenue, it said.

The move is part of the rehabilitation measures to help the airlines which were severely hit by one of the worst flood crises in Thailand’s history, said AoT.

As for the office and real property rental, service and other charges including retail shops inside and outside the terminals as well as the charges for some airlines that swiftly relocated to temporary facilities at Suvarnabhumi airport, AoT would charge them at the same rate as Don Mueang airport.

AoT estimated that Bt440 million would be spent for repair and maintenance works at Don Mueang, with Bt305 million being used to improve the eastern runway, driveway and parking area scheduled for completion in February. Maintenance work for the western runway, driveway and parking area would cost Bt135 million for commercial service expected to be ready in March.

Currently, AOT has six international airports under its responsibility - Don Mueang, Phuket, Chiang Mai, Hat Yai, Chiang Rai and Suvarnabhumi - all of which accommodate both domestic and international flights. (MCOT)
 


TAT 2012 tourism push targets India, Turkey, Indonesia

Phasakorn Channgam

Tourism Authority of Thailand officials will target India, Turkey and Indonesia to bolster Pattaya tourism in 2012.

TAT Pattaya Director Athapol Vannakit said the association as received feedback and financial support from the Pattaya and Chonburi governments, the Thai Hotels Association Eastern Chapter and Pattaya Business & Tourism Association to raise Pattaya’s profile in India and the Middle East and build on TAT’s 2011 efforts to lure Indonesian visitors to the city.

TAT Pattaya Director Athapol Vannakit.

The effort kicked off Jan. 16 with a “Pattaya & Chonburi Activities Night” at the ASEAN Tourism Forum in Cambodia.

In February, TAT will hit India and Turkey before returning to a traditional travel market in Japan. For yet another year, TAT’s only plans to exhibit in a Western country will be at the International Travel Bourse in Germany.

The rest of TAT’s planned promotion of Pattaya will focus on domestic Thai tourism including the “Discover Thailand” show at the Queen Sirikit Convention Center, and participating in projects such as the “Help Brothers & Sisters” blanket distribution project in Tak, and the “Everyone Love the Gulf of Thailand” environmental program.

While not trade shows, such activities, Athapol said, remind potential tourists of the diverse potential of tourism and shows the association’s interest in contributing to society and the environment.
 


Thai exports grow 17.2 percent in 2011

Thai exports grew 17.2 percent in 2011 compared to the previous year, or some US$228 billion, while the value of exports in December reached over US$17 billion, or a 2-percent decrease year-on-year, Permanent Secretary for Commerce Yanyong Phuangrach announced on Friday.

The over 17-percent growth was higher than the previously targeted 15 percent by the ministry, while the drop in value last month was due to the recent flood crisis. The drop was lower than that in November, however, which means that the Thai industrial sector has recovered quickly, Yanyong said.

Merchandise with a lower percentage on exports in December included main industrial goods at a reduced rate of 10.2 percent, electronics of 26.9, motor vehicles, equipment and auto parts of 20, and electric appliances of 12.9 percent respectively.

The continuous decline of Thai exports amounted to 7.7 percent in the major markets of the United States, Europe and Japan.

Meanwhile, Thai imports in 2011 grew 24.9 percent year-on-year, valued at US$228 billion.

Thai imports last month stood at US$19.1 billion, a 19-percent increase year-on-year for all types of merchandise such as fuel at 22 percent, capital goods at 14.5, consumer goods at 21.7, and raw material and semi-finished goods at 20.6 percent respectively. In December alone, Thailand recorded a trade deficit at US$2.1 billion.

However, the country in 2011 recorded a trade surplus at US$334 million.

The Department of International Trade Promotion targeted the growth of Thai exports this year at 15 percent, or around US$263 billion in value.

The rise of Thai exports in 2012 will depend on the fluctuation of the world economy and of fuel prices. The balance of trade in Q1 will still be negative but not so seriously, as the industrial sector has shown signs of quick recovery, the permanent secretary for commerce said.

Positive factors will come from the prices of agricultural goods in the world market, which shows a positive tendency, the government’s measures to boost the economy and rehabilitation measures for sectors affected by the recent flood. (MCOT)
 


HEADLINES [click on headline to view story]

December domestic auto sales, production drop year-on-year

Cabinet approves Bt380bln investment budget for infrastructure projects in North

AoT exempts charges to help flood-affected airlines

TAT 2012 tourism push targets India, Turkey, Indonesia

Thai exports grow 17.2 percent in 2011
 

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