South East Asian Automotive News

CP Pokphand, a subsidiary of Charoen Pokphand Group (CP) of Thailand, has sold one of its assets in China. To raise much needed cash, CP Pokphand sold its 50% stake in Shanghai-Ek Chor China Motorcycle to its JV partner, Shanghai Automotive. The JV is engaged in the design, manufacture and sale of motorcycles in Shanghai. CP Pokphand owns 70% of the New York listed Ek Chor China Motorcycle. (May 6^th 1998)

Daimler-Benz is approaching Thonburi Automotive Assembly, Thailand's largest dealer and sole Mercedes Benz assembler, to buy the company and take control of management. Should the deal fall through, Daimler Benz would withdraw Thonburi's license and spend Bht10bn (US$256m) to establish a 100% owned marketing unit. (May 7^th 1998)

According to the Federation of Thai Industries, exports of vehicles and parts in the first quarter rose 77.4% to Bht8.9bn (US$228m). Exports of cars, parts and components doubled to Bht6bn (US$154m) while exports of motorcycles grew 41% to Bht3bn (US$77m). Mitsubishi truck exports were particularly strong. (May 14^th 1998)

General Motors (GM) has announced that it will manufacture the Opel Zafira minivan instead of a small sedan at its plant in Rayong. Production is slated to begin in 2000 and initial volumes will be in the 40,000 to 60,000 range. This is a significant decrease from the original projection of an initial production capacity of 100,000 vehicles a year. (May 14^th 1998)

Honda Car Manufacturing (Thailand) (HCMT) has achieved ISO 9002 certification. The company estimates export orders for Honda Thailand to be Bht4bn (US$100m). HCMT plans to increase output at its Rojana plant by 10,000 units per year to a total of 25,000 in the next year. Markets to be targeted for exports include Cyprus, Turkey and several Arab nations. The company is planning to increase exports of the Accord, City and Civic models. HCMT also expects to export 70,000 Accord auto parts to Japan in 1998 at a value of Bht200m (US$5m) from its plant in Ayudhaya. (May 22^nd 1998)

Isuzu Motors Ltd is considering Thailand for an export centre. The company will start exporting CBU commercial vehicles in the next several months. Isuzu also expects to increase the value of its auto parts exports from US$80m in 1997 to US$320m in 1998. Isuzu recorded the highest sales in Thailand for the first four months of 1998, with 12,445 units sold. This represents a 25% market share in both passenger and commercial vehicles. (May 20^th 1998)

Sammitr Motor plans to increase its export revenue from 10% to 30% of earnings for next year. The company has set an export target level of Bht300m (US$7.5m) for 1998. The company stressed the 70%-80% decline in domestic demand as the impetus to increase its export ratios. Sammitr will begin selling 500 steel roofs per month to the US market this year and will also begin to export drive shafts, springs and hydraulic lifts to Australia, China and Malaysia. (May 8^th 1998)

Thai Carbon Black Plc (TCB), subsidiary of the India-based conglomerate Birla Group, will increase exports to compensate for the downturn in the local market. The company intends to increase exports by 75% percent this year compared to 60% in 1997. TCB holds a 50% share of the Thai carbon black market in Thailand. (May 11^th 1998)

Toyota Motor Thailand (TMT) Co Ltd will have its capital boosted as TMT's parent company, Toyota Motor Corp, is expected to inject as much as Bht4bn (US$100m). TMT's current registered capital is Bht520m (US$13m). During the recent months TMT has lost its status as leader in the overall market and passenger car market to Isuzu and has experienced an 80% decline in sales for the first four months of 1997 compared to last year. (May 19^th 1998)