Nissan's new Thai factory set to house test course

The Japanese car maker Nissan expects to launch its first test course outside Japan at its planned second production plant on Bang Na-Trat Road in Samut Prakan by mid-year.

"The Thailand Proving Ground will be the hub of Southeast Asia, which is the base of Nissan Technical Center," said Takayuki Kimura, the president of Nissan Motor (Thailand).

"It will help to reduce shipping costs significantly, as all new models have to be shipped to be tested in Japan."

At present, Nissan operates three test courses in Japan, at Tochigi, Kanagawa and Hokkaido.

Last year, Nissan announced an ambitious plan to build an 11-billion-baht factory adjacent to its existing one in Samut Prakan.

The factory covering 150 rai will include a production line, research and development centre and a test course in a move aimed at sustaining Nissan's growth across Southeast Asia.

The plant will have a production schedule of 75,000 vehicles a year when it starts operating in August 2014, doubling to 150,000 within a few years.

Nissan's existing plant now makes 220,000 passenger cars a year.

Once the second plant is running at full capacity, Nissan will have an annual production capacity of 370,000 vehicles excluding the 60,000 Navara pickup trucks now built at Mitsubishi's factory.

Nissan plans to move production of 60,000 Navara pickup trucks to the new plant.

Mr Kimura said Nissan plans to sell 500,000 vehicles in the Asean region in its fiscal 2016, with its market share rising to more than 15%.

For fiscal 2012, Nissan sold 260,000 vehicles in Asean for a market share of 7.2%.

It has production facilities in Indonesia, Malaysia, the Philippines and Vietnam.

In 2011, Nissan spent 25 billion yen (7.53 billion baht) to raise annual production capacity at its Indonesian plant.

"Thailand and Indonesia are the main production bases in Asean, serving both domestic and overseas markets," Mr Kimura said.

In the Thai market, Nissan expects sales of both passenger cars and pickup trucks to reach 120,000 in fiscal 2013, a dip from 132,000 in the year that just ended March 31.