Thai auto show revs up despite high oil prices

Thai auto show revs up despite high oil prices

Michael Mathes, Agence France-Presse/Bangkok

Asia's second largest auto show has expected thousands of
enthusiasts to pour into the Bangkok event starting on Friday and
lay out hundreds of millions of dollars on new wheels but experts
warned high fuel costs could put the brakes on getting carried
away.

The Bangkok International Motor Show, now in its 26th year, is
a premier showcase for the auto industry's latest models. Some
1.6 million people are expected to pass through the gates during
the 10-day event.

Plenty of high luxury and horsepower will be on offer and
Chavalit Soontrapook of event organizer Grand Prix International
said he expects sales to match or exceed the 10 billion baht
(US$260 million) at the 2004 show, which proved a bumper year for
auto sales.

"Our strength this year will be in trying to persuade people
to use less oil," Chavalit told AFP. "There is strong competition
heating up (at the show) for fuel-efficient cars."

He said the market for economy pickup trucks, particularly
from Japanese giants Toyota and Isuzu, was growing in Thailand,
especially as the country grapples with record-high oil prices.

Thai business and consumers were asked this week to bite the
bullet when the government raised diesel fuel prices by 20
percent as it tries to wean the country off a massive fuel
subsidy program that has already cost the government more than
$1.9 billion.

Thailand freed up petrol prices last October.

Automotive Resources Asia, a market research consulting firm
based in Bangkok, was predicting a more modest reaction to the
show given the oil price crunch.

"In terms of performance or sales we could expect it to be
slower than in years gone by," ARA partner John Bonnell told AFP
on the eve of the event.

More importantly, perhaps, he said the show "will be a key
barometer for how the rest of the year will play out,
particularly in light of the fuel price situation".

After a year in which Thailand's auto industry -- the largest
in Southeast Asia -- hit an all-time sales high of 626,026
vehicles, February sales fell 4.1 percent year-on-year to 47,038
as consumers put the brakes on new passenger car purchases, said
the industry's compiler, Toyota Motor Thailand.

In January, the industry had forecast 2005 could see a gain of
10 percent to 690,000 units sold but Bonnell said that may now
prove too optimistic.

Ford Thailand, which claims about a 4 percent market share in
the kingdom, is debuting its 2005 Focus series in Asia at the
show and highlighting the latest version of its iconic and
muscular Mustang GT.

Among this year's highlights is a replica of the world's first
motor "car", the Benz Patent Motor Car of 1886. The motorized
tricycle and carriage is accompanied by five other antique Benz
cars loaned by the Mercedes-Benz Classic Centre in Stuttgart.

Thai Crown Prince Maha Vajiralongkorn has lent seven of his
vintage cars to the show as well, Chavalit said.

On offer will be a raft of luxury European models, Japanese
concept cars, rally-worthy roadsters, vehicles by Thai bus and
van manufacturers, a cabriolet Cooper Mini and a series of sport
utility vehicles.