The government is being urged to move ahead with a plan to set up a long-delayed automotive testing centre to strengthen Thailand as a regional automotive hub when the Asean Economic Community (AEC) takes effect in late 2015.
"The testing centre is vital to upgrade Thailand to become an Asean production hub for innovative vehicles," said Thanawat Koomsin, newly appointed president of the Thai Automotive Industry Association (TAIA), after meeting with Industry Minister Chakramon Phasukvanich yesterday.
"Thailand is the de facto major car producer of Asean with maximum output of 2.85 million units a year."
The AEC aims to beef up standards in 19 automotive categories. The testing centre run by the Thailand Automotive Institute (TAI) in Samut Prakan can service only eight categories.
Thailand's automotive industry has sought financial support from the Strategic Committee for Reconstruction and Future Development (SCRF) since October 2012 for its plan to set up a facility at a cost of 8 billion baht, mainly to serve the regional industry.
Vehicles tested at the centre would need no further testing in other countries. Thai vehicle assemblers currently need to ship their products to be tested in India, Taiwan or Spain when a new series is launched.
The TAI has proposed three locations for the new centre: Gateway City, Amata City and Hemaraj industrial estates in eastern Thailand, as they are close to assembly plants.
In 2013, the SCRF argued car makers should share the cost of a testing and research and development centre. It also instructed the TAI to study the feasibility of getting funding from car companies.
Mr Chakramon said the government remained committed to investment in the testing centre but the plan should be divided into two phases with a reduced budget.
He said the TAIA should study the viability of the new centre's development and the budget required for the first phase.
The centre in Samut Prakan should also be improved, he said.