The Thailand Automotive Institute (TAI) has reiterated its call for government investment to help set up the long-delayed automotive testing centre.
Vichai: New testing centre a top priority
"During my four-year tenure, I will try my best to push for the establishment of the centre," said newly appointed president Vichai Jirathiyut.
In October 2012, the TAI sought financial support from the Strategic Committee for Reconstruction and Future Development (SCRF) for its plan to set up a facility at a cost of 8 billion baht, mainly to serve the regional auto 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 whenever a new series is launched.
Under the TAI plan, three proposed locations for the testing centre, which will cover at least 200 rai, are Gateway City, Amata City and Hemaraj industrial estates in eastern Thailand, as they are close to car assembly plants.
But in 2013 the SCRF argued car makers should share the cost of a testing and research and development (R&D) centre. It also instructed the TAI to study the feasibility of getting funding from car companies for the project.
However, Mr Vichai insisted the government should be responsible for the cost of the whole investment and divide it into two phases costing 3 billion baht and 5 billion baht.
He said the testing centre is the top priority under the third TAI’s master plan for 2012-16, aiming to promote Thailand to become an Asean production hub for innovative vehicles.
The centre is also in line with the Asean requirement of beefing up standards in 19 automotive industry categories. The current regional centre can achieve only 7-8 categories.
"A new testing centre can ensure the efficient production of manufacturers in Thailand covering cars, motorcycles and auto parts, especially for small and medium-sized enterprises," Mr Vichai said.
Automotive exports earned the country 1.05 trillion baht last year, up by 4.61% from 2012, with imports worth 611.57 billion, down by 8.6%.
"The 8-billion-baht cost of the testing centre is insignificant compared with automotive export value," said Mr Vichai.
Thailand's car production is expected to reach 3 million in 2017, he said.
Mr Vichai forecast the country's car output will drop by 5-10% this year from 2.456 million last year.