Thailand will export 1 million cars a year by 2011

(06/08/2010) - I know that this may be a boring news for some of you, compared to the spy views of the upcoming cars we've been reporting recently, but as Indonesians, it's best to stay alert of what your neighbors are doing right, so read on please. (By the way, do you know that Malaysia is now the number one tourist destination in S.E Asia?)

Thailand has been named the “Detroit of Asia” since the 90's, as it has successfully developed the supporting industries which made car parts and accessories. Despite recent political upheaval, Thailand still is very much ahead of the other Asean countries when it comes to auto manufacturing. Most of the world's leading car makers have established bases in Thailand, and are investing heavily to produce cars with new modern and environmentally-friendly technologies.

According to the spokesperson of the Thai Auto industry a while ago, it's local car output will be increased by 500,000 units between the year 2011 to 2012 to reach 1.8 million units by next year, with 1.05 million units to be exported, and the remaining 750,000 units for domestic Thai market. Ford Motor co. will be investing another $450 millions, Mitsubishi Motor Co. too $450 millions, and Suzuki $225 millions to expand their existing production plants soon in Thailand. Most of these big car producers are aiming to boost productions of environmentally - friendly smaller vehicles for local market and exports. Ford has so far invested more than $1 billion in Thailand for it's car (and related) manufacturing.

Looking at the policies on investment incentives announced by the Thai government recently, one would understand why investors continue to pour in their money there. Besides the advantages of the supporting industries, Thailand’s government is also now offering very attractive tax incentives to investors. The Thai Auto industry is aiming to grow to 2.5 million units by 2014, to be one of the world's biggest.