CP may invest in vehicle productions to prepare for AEC
Published on May 4, 2012 by TFP · No Comments
BANGKOK, 4 May 2012 Thailand’s giant food producer, Charoen Pokphand (CP), has revealed its plan to expand its investment in vehicle production to accommodate the rising demand after the ASEAN Economic Community (AEC) is formed in 2015.
CP Group Chief Executive Officer of the Industrial Division, Thanakorn Seriburi, said the company will produce vehicles to welcome the ASEAN integration. He said CP has brought in Chinese-made motorcycles to have test runs in Thailand in order to assess their strengths and weaknesses.
He explained that the motorcycles that CP plans to produce will be priced lower than regular market prices. The company will make a decision as regards the investment by the third quarter this year.
If it is to proceed with the plan, Mr Thanakorn said CP aims to take 10% of the market shares in motorcycle production, equivalent to 200,000 units per year.
China’s number one carmaker, Shanghai Automotive Industry Corporation (SAIC), which produces 4 million vehicles per year, has shown interest in setting up a production base in Thailand. The SAIC has also asked CP to co-invest in the venture, producing right-hand drive vehicles for Thai, ASEAN, and Australian markets.
(NNT : Nuttaporn Chanchokpong)