INGRESS Corporation Bhd expects its automotive component business in Thailand to record between 30% and 40% growth in turnover over the next three years, its executive vice chairman Rameli Musa said.

'The prospects of the automotive industry in Thailand is bright. By next year, vehicle production in Thailand is expected to be 800,000 units, of which 40% will be exported," he said.

He added that total production for Thailand's automotive industry was targeted to hit the one million mark by 2006.

Rameli said this in his presentation at the Federation of Malaysian Manufacturers (FMM) business seminar on Exploring Thailand Post AFTA: Business & Investment Opportunities in Kuala Lumpur on Tuesday.

Some major automotive assemblers such as Honda, Toyota, Ford and Mazda were expected to make more investments in Thailand, he added.

Rameli said the plant in Thailand, under Ingress Autoventures Co Ltd, currently contributed 15% to the group's total profits but this was expected to grow in the coming years.

By the financial year ending Jan 31, 2006, 50% of Ingress' revenue would be from Thailand and
Indonesia,he added.

He said Ingress Autoventures' revenue was targeted to increase to 340 million baht this year, and exceed 500 million baht in 2004 and 700 million baht in 2005.

According to Rameli, lngress' Thai plant currently had a total built-up area of 81,000 sq ft but this would
need to be expanded if more contracts were obtained.

He said Thailand was establishing itself as a "worldwide vehicle production base" with most of the
world's largest auto makers such as Toyota, Nissan, Mitsubishi, Honda and Isuzu setting up high volume production plants in the country.

He added that more "world car" models were being built in Thailand, especially of one-tonne pick-up trucks and passenger cars.

With this, local sources of raw materials, components and parts suppliers were expected to develop at a rapid rate, he said.

FMM president Datuk Mustafa Mansur said Malaysia's total trade with Asean last year amounted to RM162bil, of which Thailand accounted for 17%.

Mustafa said FMM believed that Malaysia's trade with Asean in general and with Thailand in particular would continue to increase following the full implementation of the Asean Free Trade Area this year.