Local auto makers to take part in Thai show

MANILA, Philippines - For the first time, local automotive manufacturers will participate in the Thailand Auto Parts and Accessories (TAPA) 2010, a move that is expected to help boost the local car industry.

The Center for International Trade Expositions and Missions (CITEM) said the auto show is an important sourcing event for international players in the Association of Southeast Asian Nations (ASEAN).

CITEM said that as per industry reports, the ASEAN region has a promising global market for the automotive industry with sales amounting to two million vehicles in 2008.

ASEAN countries are attracting major investments in vehicle production because of growing demand. Some major auto companies are also looking for a production hub in ASEAN next to Thailand.

“The Philippine participation to the event aims to boost the local auto parts sector and highlight the country’s capability in supplying high quality automotive products and services,” Trade Undersecretary Thomas G. Aquino said.

“The participation also aims to bring back the Philippines into its position as a major player in the auto parts and accessories industry in the Asia Pacific,” he added.

According to the Philippine Export Development Plan (PEDP) 2008-2010, the Philippines hopes to build deep economic ties with the ASEAN region and ASEAN partners like China, Korea, Australia, New Zealand and Japan.

Philippine goods including automotive parts are recognized as among the government’s revenue stream projected to grow to $61 billion this year. The PEDP defines the country’s export strategies and programs that shall be implemented by government and the private sector.

To date, there are about 256 companies manufacturing auto parts and accessories in the country. Tradeline Philippines also posted an increase of Philippine transport equipment to Thailand by almost 300 percent from 2001 to 2006 with export sales amounting to $126 million and $377 million, respectively.

With free trade agreements (FTAs) in the ASEAN region in place, neighboring countries such as China, Japan, Korea, Australia, and New Zealand are also exploring business development with the ASEAN countries. “The exhibition is important for countries such as the Philippines so our local auto parts manufacturers can gain inroads in the fast growing ASEAN market,” added Aquino.

In 2008, TAPA featured 285 exhibitors from Thailand , Taiwan, Malaysia, Singapore and Germany attracting more than 13,800 trade buyers from 60 countries around the world including Japan, China, Middle East, India, US and Brazil.