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Thai car-part makers eye Middle East
Nation, 20 May '09

Small and medium-sized auto parts manufacturers in Thailand will explore opportunities in the car repair business in the Middle East as a survival strategy amid the economic crisis.

Samart Deebhijarn, chairman of a cluster of auto parts SMEs, said yesterday that the companies have already talked with the Department of Export Promotion about the plan to organise a mission of auto parts makers to the Middle East to seek possible partners for joint investment in car repair centres. The region holds much more promise for investment in the car repair business, where there are few competitors.

According to a survey, the Middle East countries have no repair garages, due to the scarcity of skilled technicians and workers. If their cars run into problems, people there will opt to dump them.

The global economic crisis has prompted the lay-offs of about 60,000 employees in Thailand's auto parts workforce of about 300,000. About 10-20 per cent of the companies in the industry also had to shut down following the slump in new orders.The remaining SME auto parts makers have to revamp their strategy to weather the economic storm.

Last year, the country's exports of auto parts dropped 27 per cent, due to stiff competition from China and India.

Samart said Automotive and Electronics Summit 2009, which will be held on June 25-26 at Bitec in Bang Na, would provide the auto parts business owners the opportunity to learn new technology.

Nichapa Yoswee, managing director of Reed Tradex, the fair's organiser, said the event is Asean's largest showcase of technology and machinery for industrial use, with products of 1,850 brands displayed by 450 exhibitors from 30 countries.