Asian auto industry may recover by 2003<\/p>\n
BANGKOK, Thailand (AP): Asia's automobile industry should
\nreturn to peak sales by 2003 as the region emerges from its
\nrecession, one expert at a conference said Thursday.<\/p>\n
\"Vehicle sales in Asia will grow faster than anywhere in the
\nworld,\" said Graeme Maxton, associate editor with the Economist
\nIntelligence Unit, which organized a two-day conference on the
\nAsian automotive sector.<\/p>\n
While sales in the United States will grow by only 600,000
\nunits between now and 2003, Asian sales will grow by 2 million in
\nthe same period, Maxton said.<\/p>\n
\"By 2002 or 2003 we should see the return of record volume
\nsales,\" he said.<\/p>\n
Asian vehicle sales peaked at 6 million units in 1996, before
\nthe economic crisis slashed consumer confidence across the
\nregion.<\/p>\n
Part of the reason Asia's growth will look so high in the next
\nfew years is because of the low baseline for measuring following
\nthe recession, Maxton said.<\/p>\n
He also said the ASEAN Free Trade Agreement, or AFTA, which
\nsets out a timetable for reducing tariffs on trade within the
\nAssociation of Southeast Asian Nations, should boost production
\nefficiency in the region.<\/p>\n
ASEAN comprises Thailand, Indonesia, Singapore, Malaysia,
\nPhilippines, Brunei, Vietnam, Cambodia, Myanmar, and Laos.<\/p>\n
But countries aren't likely to fully liberalize automobile
\nproduction if it entails layoffs in fledgling industries at home,
\nMaxton said.<\/p>\n
Under commitments to the World Trade Organization, Thailand
\nwill abolish its local-content rule on Jan. 1. Currently, more
\nthan 50 percent of a locally-assembled vehicle must come from
\nlocally-produced parts.<\/p>\n
Thailand's exports of vehicles and parts will total 100
\nbillion baht (US$2.5 billion) this year, compared with 60 billion
\nbaht ($1.5 billion) in 1998, the country's industry minister
\nsaid, addressing the same conference.<\/p>\n
Suwat Liptapanlop said Thailand expected to export 125,000
\nunits of completely built vehicles in 1999, compared to 67,000
\nunits a year earlier.<\/p>\n
Suwat said Thailand fully supports AFTA, explaining that it
\nwould allow automakers in ASEAN to specialize in production and
\ntake advantage of economies of scale.<\/p>\n
Thailand currently holds 44 percent of the ASEAN automotive
\nmarket in terms of production, with an annual capacity of 900,000
\nvehicle units and 2 million motorcycles, Suwat said.<\/p>",
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