* Unsure if Toyota will invest more if political crisis is
* New foreign investors may opt to shift elsewhere
* 2014 industry car sales may miss target due to politics
By Manunphattr Dhanananphorn
BANGKOK, Jan 20 Toyota Motor Corp may
reconsider investing up to 20 billion baht ($609 million) in
Thailand, and could even cut production, if political unrest
drags on, the head of the Japanese automaker's local unit said
Toyota is the largest car manufacturer in Thailand,
producing 800,000 vehicles a year. Plans to increase its annual
capacity by 200,000 vehicles a year over the next three to four
years are now uncertain, Kyoichi Tanada, president of Toyota's
Thai unit, told a news conference.
"Our new investment in Thailand may not happen if the
current political crisis goes on longer," Tanada said.
"For new foreign investors, the political situation may
force them to look for opportunity elsewhere. For those that
have already invested, like Toyota, we will not go away. But
whether we will invest (further) or not, we are unsure."
Thailand is the biggest auto market in Southeast Asia and a
regional vehicle production and export base for the world's top
car manufacturers like Honda Motor Co and Ford Motor Co
Protesters have been trying for more than two months to
bring down Thailand's government, forcing ministries to close
and Prime Minister Yingluck Shinawatra to shift her workplace as
part of an attempted "shutdown" of the capital.
If the unrest affects economic growth, Toyota may cut its
production in Thailand while it assesses the situation, Tanada
"After the shutdown, we have fewer visitors going to our
showrooms. We are ready to cut down our car output if we are
affected by the political situation," he added.
Toyota produced around 850,000 cars in Thailand in 2013,
selling 445,000 domestically and exporting some 430,000
vehicles. This year, it aims to sell 400,000 cars domestically
and export 445,000, Tanada said.
Overall auto industry sales in Thailand are expected to fall
13.6 percent to 1.15 million vehicles in 2014, mainly due to
weaker consumption and slow economic growth, data from Toyota's
Thai unit shows.
This will be the second consecutive year of decline after an
80 percent surge in 2012 fuelled by government subsidies for
first-time car buyers and pent-up demand after severe flooding
in late 2011.
Domestic auto sales fell 7.7 percent to 1.33 million
vehicles in 2013, according to the Federation of Thai Industries