Volvo last year exported 1000 cars from Thailand to other countries within Asean either in the form of “Asean build up cars” (ABU) or “semi knocked down cars” (SKD). The expected year-end result was revealed during Volvo Thailand’s celebrations last year of the first anniversary of its inter-Asean export programme.
Volvo began as the first car manufacturer in Thailand to export semi knocked down cars to Malaysia in 1998 under the Asean industrial co-operation scheme (AICO). Three years later the company expanded its inter-ASEAN operation to include export of so-called ABU cars to Indonesia as well.
Based on the current success of the programme, Volvo forecasts that its exports from Thailand to other countries in South East Asia by 2005 should reach 4000 cars and a turnover of THB 17.5 Billion.
An increasing number of local components in these cars are going to be sourced locally in Thailand. By 2005, Volvo expects to purchase components from Thai suppliers worth THB 4 Billion.
Volvo’s expansion into the regional export market follows closely the implementation of the first phase of the Asean free trade area (AFTA), which will be completed in 2003.