Bangkok, March 29,2010 – Thailand expects its auto parts industry to grow as demand forvehicles and auto parts increase in South East Asia.

Revenue for the automotive parts and products, automotiveaccessories, and automotive equipment and machinery industries in 2010 islikely to increase 12 percent year-on-year to an estimated value of US$ 16.8billion or 560 billion baht.

Mrs. Srirat Rastapana, Director General of the Department ofExport Promotion (DEP), Ministry of Commerce, Thailand said that the country isexpected to produce 2 million vehicles in 2012 and 2.5 million vehicles in2015, of which, more thsan 50% will be for exports.

She added Thailand's auto parts industry is also expected tobenefit from the elimination of import duties on automobiles and parts underthe ASEAN Free Trade Area (AFTA) scheme. The 5 per cent tax on CKDs and partstraded among 6 ASEAN countries – Thailand, Malaysia, Indonesia, Brunei,Singapore and Philippines – had been removed on January 1, 2010.

"The removal of tax obstacles would generate both newopportunities and challenges of international trade to the Thai auto partsindustry. In particular, there would be new opportunities to expand exports ofThai auto parts for both OEM and REM to much larger markets in 2010," said Mrs.Rastapana.

DEP together with Thai Auto-Part Manufacturers Associationwill be organizing the Thailand Auto Parts & Accessories (TAPA) 2010exhibition from April 28-May 2 at the Bangkok International Trade & Exhibition Center.

The organizers for TAPA 2010 has also introduced ASEANPavilion, aimed at promoting ASEAN as the regional sourcing hub for auto partsand accessories. Leading auto parts and accessories companies from Indonesia,Malaysia, Philippines, Singapore and Vietnam have confirmed theirparticipation.

DEP expects TAPA 2010 to generate sales worth US$650,000during the 5-day exhibition. This year's exhibition expects over 16,000visitors from ASEAN, South Asia, Japan, Taiwan, Australia, Africa, Europe andMiddle East, up 10 per cent from 2008.

"We hope that TAPA 2010 will promote Thailand as a regionalsourcing hub for automotive parts and accessories in ASEAN," says Mrs.Rastapana.

"I would like to urge companies looking to source forquality auto parts and accessories at competitive prices to visit TAPA 2010,"she added.