Automotive

Thailand - Promoting Thailand as a car production hub in Asia Pacific

Source: Thai News Service, 31 March 2010

The Thai Automotive Industry (TAI) has planned to promote Thailand as the major car production base of the Asia Pacific region. TAI President, Suparat Sirisuwannangkura, revealed the industry's annual strategy to combine the industry with the auto parts sector towards the goal of being the major production base of the Asia Pacific region.

It is believed that the cluster of industries would enable Thailand to compete with other automobile producing countries in the Free Trade era and able topple inferior quality cars produced in China and India. In addition, the establishment of a research and development institute was revealed in order to boost production rate at the outstanding level among all Asia Pacific countries, particularly the eco cars production.

South Korea - Car sales up 45% in March

Source: Dow Jones International News, 01 April 2010

South Korea's five car makers posted a combined 45% on year increase in vehicle sales in March, helped by an improving global economy combined with robust demand for new models. Collectively, they sold 584,970 vehicles, up from 403,189 units, according to data from the companies released. The sales figures indicate the local car industry's pace of recovery is picking up speed after the five companies reported a 30% on year increase in sales in February.

Hyundai Motor Co. and Kia Motors Corp., which together form the world's fifth-largest car maker by sales, were helped by increased demand for vehicles manufactured at their overseas plants. Domestic sales by the five car makers, that also include GM Daewoo Auto & Technology Co., Ssangyong Motor Co. and Renault Samsung Motors Corp., jumped 30% from a year earlier to 123,259 units in March from 94,867 units.

China - Pure electric cars key to launch of subsidy

Source: South China Morning Post, 02 April 2010

China government has delayed the long-awaited consumer subsidies for alternative-fuel vehicles because of disagreement within the car industry over whether to favour hybrid cars or pure electric vehicles. A Ministry of Industry and Information Technology meeting in March, which included more than 10 car executives, ended without an agreement on subsidies.

China originally planned to begin the subsidies in the first quarter. But car executives and the government could not come up with a compromise. The plan was to give individual consumers a huge subsidy, as much as RMB60,000 (US$8,789.15) for a pure electric, plug-in car, while hybrids would get RMB3,000 (US$439) per unit.

Visit our Automotive practice