Thai Output Gaining Post-Flood Momentum

Thai vehicle production is expected to surpass 2 million units this year, half of them for export, as auto makers bounce back from last year’s domestic floods and Japan’s earthquake and tsunami.

The twin disasters slashed 2011 output 11.4% to 1.46 million units.

Federation of Thai Industries' Automotive Industry Club Vice President Suparat Sirisuwan-nangkura says the industry could see total output of 2.1 million to 2.3 million units this year.

Suparat tells The Nation newspaper auto makers have restored their capacity to almost 100% and major companies, especially Toyota, Honda, Isuzu and the U.S. and European manufacturers, have gradually delivered their back orders of about 450,000 units.

“We are sure that we could celebrate the country's car production hitting 2 million units,” he says.

Vehicle producers and components suppliers have been able to tackle the auto-parts supply chain disruption caused by last fall’s severe floods, Suparat says. "Now, there is talk among carmakers and auto-parts suppliers on how to deal with the flood problem if it happens this year."

Club spokesman Surapong Paisitpattanapong says April production rose 59.6% year-on-year to 142,000 units, with passenger-car output up 49.4% to 52,400 as Honda reopened its previously flood-stricken car plant.

In the first four months of the year, light-vehicle production rose 15% to 641,000 units,

including 359,000 for export, Surapong says.