Wanted: About half a million more labourers

Labour needed in the auto parts industry is set to double in the next nine years as Thailand becomes one of the world's top five vehicle exporters.

The Thai Auto-Parts Manufacturers Association (Tapma) said the country ranks 13th globally in automotive production, with 957,846 units estimated for all of 2011.

Tapma says production will reach 2 million units in 2012 and 3.2 million in 2020.

This will result in a need for 571,429 workers in the industry in 2012, an increase of 57,143 workers from 2011.

An additional 257,143 will need to be added by 2015, and the total amount of workers needed is expected to reach 914,286 in 2020, up by 457,143 from 2011.

In 2009, half of all auto workers had finished ninth to 12th grades, 15% had graduated from vocational school, 25% had finished high vocational schools, and 10% were undergraduates.

The auto parts industry consists of 2,373 businesses _ 1,641 small and medium-sized enterprises in the second and third tiers, 709 companies in the second and third tiers and 23 carmakers.

The flooding caused damage to 102 auto-parts factories in the seven inundated industrial estates, which together are worth 326 billion baht and employ 415,882 workers.

An additional 110 factories outside industrial estates were directly affected along with two automakers _ Honda and Thai Suzuki Motor.

As a result, vehicle production in October totalled 49,439 units, a drop from 152,689 units in the same period in 2010.

It also caused a drop in Thailand's market share in Asean from 56% in September 2010 to 25% in 2011.

Tapma president Achana Limpaitoon criticised requests from some automotive companies for the government to consider a permanent reduction in the excise tax on automobiles in order to boost the domestic car market.

"If there is a reduction in the tax on car imports, it will affect Thailand's auto parts manufacturers, so the government should not let the period be too long," said Mrs Achana.

Earlier, Mitsubishi Motors (Thailand) proposed the government consider permanent reductions in the excise tax on cars if it wants to boost the domestic market.

Lower rates would enable car prices to fall, thus attracting more customers to showrooms, it said.

In a move to help stimulate the auto industry and give consumers a chance to purchase their first car, the government in September initiated a first-time car buyer scheme offering an excise tax rebate of up to 100,000 baht.

The scheme initially encompassed all types of vehicles but was later adjusted to include only passenger cars with an engine capacity of less than 1,500cc or pickup trucks priced below one million baht.

The government also recently announced plans to allow flood victims who buy a new car to replace a damaged one to receive the same excise tax rebate.

Mrs Achana warned that Indonesia is poised become an important competitor to Thailand in the automotive industry due to its stable politics, low labour costs and many Thais investing in the country.