MOTOR EXPO 2014 WELCOMES AEC WITH THE CONCEPT OF ‘MOVING FORWARD TOGETHER . . . ASEAN AUTOS’

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MOTOR EXPO 2014 WELCOMES AEC WITH THE CONCEPT OF ‘MOVING FORWARD TOGETHER . . . ASEAN AUTOS’

http://www.thailand4.com/.auto/2014-02-06/8fc20773c69023277fb7473a62602fbe/

Automotive Press Releases Thursday February 6, 2014 10:31

Bangkok–6 Feb–Professional Media Business

MOTOR EXPO” announces its 2014 concept centres on welcoming the opening of ASEAN ECONOMIC COMMUNITY or AEC by setting the stage for unifying 10 member countries for a bright future under the concept of “MOVING FORWARD TOGETHER…ASEAN AUTOS”.

Kwanchai Paphatphong, President & CEO of Inter-Media Consultant Co., Ltd. and Organizing Chairman of “The 31st Thailand International Motor Expo 2014” reveals that the Organizer wants the Motor Expo this year to be a platform for welcoming 2015, the year in which an important economic phenomenon – the opening of ASEAN ECONOMIC COMMUNITY or AEC – will take place, leading to tangible cooperation of 10 ASEAN member countries with the auto industry being one of the sectors promoted to share the single production base and market.

Comparatively, Thailand’s automotive industry has the highest potential overall, capable of producing over 2 million vehicles per year, half of which being exported to overseas markets. Thailand is a significant production base of the world in the category of 1-ton commercial vehicles or pickup trucks and standard energy-saving vehicles or eco-cars.

Indonesia has the second largest auto industry which is fast growing, thanks to the state promotion of low-cost green cars production. Followed by Malaysia which has the third largest auto industry, with passenger cars, including the national car well known worldwide, accounting for 90 percent of the total output.

While the Philippines, though producing less than 100,000 cars per annum, is a major automotive parts manufacturer of ASEAN whereas Vietnam has attracted many investments by Chinese manufacturers in production bases for various types of commercial vehicle operating under government support.

“I believe the potential of the automotive industry in each of the said countries will develop rapidly after the opening of AEC for many reasons, for example free flow of capital, reduction and removal of import tariffs among member countries, the linking of “supply chain” or networking of products and services as well as mobility of skilled labour, resulting in flexibility for operators in procuring raw materials, equipment, machinery and personnel.”

“Moreover, the over 600 million total population of the region combined with the expectation that by 2018 the ASEAN automotive market size will be over 4.7 million vehicles per year, ranking sixth in the world, will attract major manufacturers to step up investment in the region on a continuing basis.”

Obvious benefits arise as when the operators’ production and managerial costs are reduced vehicle prices tend to represent better value for money. When knowhow can be transferred without restriction, production standards and technologies will be higher. And after removal of the tariff wall, a wide variety of vehicles will be available in the market for buyers to choose from.

“As for Thailand’s auto market in the year 2014, the growth is expected to decline by about 10%, judging from the political protests which, if extended, will retard consumer demand in the first half of the year. In any case, I am optimistic still that by the third and fourth quarters the market will gradually adjust to normal level and consumer demand will surge once again exactly during the period of the Motor Expo 2014,” Kwanchai said in parting.

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