Statistics and analysts' forecasts aside, the fact that the domestic car market is experiencing stable growth rates instead of quantum leaps means that the right buttons are being pushed by the Thaksin government to further promote and develop the auto industry, especially supporting industries such as components and parts manufacturing.

The Maybach is Daimler Chrysler's answer to BMW's Rolls-Royce and Volkswagen's Bentley car marques.

The latter half of 2002 featured a number of key developments that cemented Thailand's position as the key player in the Asean automotive market.

However, central to the recovery in the Thai automobile market will be exports, which are expected to reach 500,000 units by 2006.

Toyota Motors Corporation director Akio Toyoda announced in the latter half of the year that Toyota would begin implementing its 35-billion-baht Innovative and International Multipurpose Vehicle (IMV) project.

A model shows off the Mitsubishi GZ2, a concept new car, at the 18th Thailand International Motor Expo in early December at the Impact Arena in Muang Thong Thani.

Translation: Toyota will move its entire one-ton pickup truck production from Japan to Thailand and transform Thailand into its world procurement centre. The IMV programme will result in 50 billion baht worth of automotive exports.

Commercial vehicle powerhouse Isuzu is also expected to move its pickup truck production to Thailand.

Isuzu and Toyota will combine to contribute to Thailand's ability to achieve annual assembly figures of 940,000 units by 2004, or a 48% share of the Asean region, according to the consultancy Automotive Resources Asia.

Another key development was the government's decision to revamp the outdated vehicle tax structure by simplifying tax categories and basing everything on the value-added tax system.

However, the act of simplifying came at the cost of pickup passenger vehicles (PPVs), which are taxed as passenger cars, much to the dismay of the major automakers with products such as the Mitsubishi G-wagon and the Toyota Sport Rider.

Next came a trend that vehicle distributors started to develop, which resulted in a buyer's market for cars. Car distributors spoiled consumers rotten with attractive rebates and sales promotion incentives such as an 84-month installment plan, 0% interest rates, no-down payments, cash rebates and free first-class insurance.

Another sales booster was the Thailand International Motor Expo 2002, staged from Nov 30 to Dec 10 by Inter Media Consultants. Although much smaller in scale when compared with the Bangkok International Motor Show organised by the Grand Prix Group, the Motor Expo is still a major player, which guaranteed new vehicle bookings of about 10,000 units in advance of the Christmas high season.

Ryoichi Sasaki (above, third from left) attends the launch of the Toyota Soluna Vios on the eve of the 12- day Motor Expo. The 1.5-litre model will be priced starting at 499,000 baht to compete against the new Honda City (below) . Toyota aims to sell 30,000 units per year of the Vios locally.

However, sources say that the Federation of Thai Industries' Automobile Club is planning to taking over responsibilities from the two main organisers in the near future.

The luxury car segment, meanwhile, is expected to gain an even stronger presence due to aggressive marketing by marques such as Rolls-Royce, Bentley Continental and the 70-million- baht Mercedes-Benz Maybach starting in January 2003.

Another boost that should ensure continuing sales momentum will be the revival of the small-car rivalry between Honda and Toyota.

The new City and the Soluna Vios, which debuted in November 2002, will take centre-stage in the 1.5-litre segment in a rivalry that the industry needs to stay healthy and competitive.

What remains from the financial crisis are merely painful but necessary memories for all sectors, especially the automotive industry, where 60% of sales vanished from a high point of about 590,000 units when the brunt of the financial crunch hit in 1998.

The automotive industry has proven quite resilient, based on local production of 459,000 units, which is 36% of Asean's total annual capacity, according to Automotive Resources Asia data.

However, the key to the recovery for the Thai market will be exports which are expected to reach 500,000 units by 2006.

According to automotive export data from MMC Sittipol, the 10-month export value of 143,419 CBU (completely built-up) units worth 65.3 billion baht and parts amounting up to 21 billion baht, was a decrease of 3.6% year-on- year.

Mitsubishi was the perennial export leader with 60,697 CBU units of the Strada L200 or a 42.3% share of total automotive exports. At the beginning of the third quarter, vehicle sales of 215,994 units in the first seven months gave hope to the industry as it showed a 32.5% increase over last year and prompted the annual forecast to be adjusted from 320,000 to 360,000 units. Passenger car and commercial vehicle sales from January to July were 69,012 units and 146,982 units respectively, according to Toyota.

The Isuzu D-Max 3.0- litre double-cab pickup (left) strikes a pose. The D Max has been an especially popular product for Isuzu, the perennial pickup leader, though Toyota has declared that it has its sights firmly on first place in the segment.

August sales reached 35,758 units which further impressed industry observers as the full-year forecast was lifted again to the final mark of 400,000 units.

Sales of Isuzu's new D-Max started kicking in as it recorded monthly sales of more than 8,000 units from August to October. Combined with Toyota's D4D commonrail diesel technology in its Hilux Tiger, the one-ton pickup truck segment was looking at a 10-month sales total of 190,506 units or an increase of 43.4% compared with the same period last year.

Spicing things up will be Toyota's grand manifesto predicting it will wrest the one-ton pickup truck crown from Isuzu. Toyota may be the perennial leader in total sales but Isuzu has been dominant in the pickup segment.

UPHILL BATTLE?

Critics say that Toyota is facing an uphill battle with the loss of former vice-president Mingkwan Saengsuwan, now the director of the Mass Communications Organisation of Thailand, and the fact that Toyota has interests in both the passenger car and one-ton pickup truck segments.

Arch-rival Isuzu, with its key marketing executive Panatda Chenvannasin, devotes its entire effort to pickups.However, should Toyota realise its target in 2003 it will be a resounding endorsement of the decision by Toyota Motor Thailand president Ryoichi Sasaki to request that key management figures such as such as vice-president Paiboon Waiquamdee be brought over from Siam Cement Plc.

October sales stood at 37,481 units bringing the 10-month total vehicle sales to 325,818 units and a more positive outlook for the industry's ability to achieve new vehicle sales of 400,000 units for the entire year.

Toyota, Isuzu and Honda now dominate the local industry, accounting for 67.1% of the total vehicle market as of October 2002.

Toyota and Honda have a combined 67.2% market share of the passenger car market while Isuzu and Toyota have a combined 66.5% share of the one-ton pickup truck segment. Thailand's auto industry is heading for greener pastures with improving domestic sales and the coming surge in exports once major players finally settle down with their one-ton pickupproduction bases.