Korean Automakers Thrive in China as Japan Car Sales Drop

Hyundai Motor Co. (005380) and affiliate Kia Motors Corp. (000270) forecast sales in China will exceed their targets as South Korea’s two largest carmakers benefit from a wave of anti-Japan protests in the world’s largest vehicle market.
The two carmakers will probably sell more vehicles in 2012 than the 1.25 million they had projected, Seoul-based Hyundai Motor said in a statement yesterday. Combined deliveries rose to 127,827 units last month, or 9.5 percent higher than the previous record set a year earlier, it said.
Non-Japanese brands stand to gain as Chinese consumers shun products from Toyota Motor Corp. (7203) to Sony Corp. (6758) after a territorial dispute escalated last month, when Japan decided to purchase a group of islands claimed by both countries. JPMorgan Chase & Co. (JPM) economists warned last week the political row between Asia’s two largest economies will cause Japan’s gross domestic product to contract this quarter.
“Although the China sales results are definitely good news for Hyundai and Kia as a whole, the benefits from the anti-Japan movements aren’t likely to last long,” said Lee Sang Hyun, an analyst at NH Investment & Securities Co. (016420) “Also, Japanese automakers that resume production today will try to make up their losses.”
Production in China is typically shut down for the annual so-called Golden Week holiday that started Oct. 1 this year.
The China gains failed to impress investors as Hyundai Motor shares fell for a fourth day, dropping 2.1 percent to 237,500 won at the close in Seoul trading. Macquarie Group Ltd. (MQG) analysts wrote last week third-quarter deliveries worldwide at Hyundai Motor and Kia were about 4 percent lower than expected.

Tumbling Sales

Nissan Motor Co. (7201), which has the highest market share in China among Japanese carmakers, saw September sales fall about 35 percent, while Toyota plans to cut October production 50 percent from a year earlier, the Mainichi newspaper reported Oct. 6, without saying where it got the information.
Mazda Motor Corp. (7261) reported Oct. 4 deliveries in the country tumbled 35 percent to the lowest in 19 months, while Mitsubishi Motors Corp. (7211) said a day later that Chinese sales plunged 63 percent.
In September, traditionally a major shopping season in China, Hyundai Motor and Kia sales in the country were driven by the Langdong and K2 models, respectively, according to yesterday’s statement. Deliveries at Hyundai Motor increased 15 percent to 84,188 units, and climbed to 43,639 units from 43,508 units at Kia.
Hyundai Motor’s third Chinese plant, which opened earlier this year, may help the company increase production and sell more vehicles in China, though Kia won’t be able to expand much further because its plants in the country are already operating at full capacity, NH Investment’s Lee said.

GM Sales

Not all non-Japanese brands capitalized on the protests.General Motors Co. (GM) reported September sales rose 1.7 percent from a year earlier to 244,266 units, slowing from the 7.3 percent surge the previous month. Sales of Buicks declined 1.8 percent while those of Cadillacs fell 8.3 percent, GM said.
Japanese vehicle manufacturers cut output in China in August and officials at the companies said sales and production were poised to deteriorate in September amid the deepening territorial row which has become the worst diplomatic crisis between the two nations since 2005, when thousands of Chinese protested Japanese textbooks that downplayed wartime atrocities.
The dispute escalated when Japan said Sept. 11 that it would purchase the islands, known as Diaoyu in China and Senkaku in Japan, from a private owner.

Nissan, Mazda

Nissan expects anti-Japanese sentiment to hit September sales, Executive Vice President Takao Katagiri said on Oct. 5. The company will weigh the impact of the Chinese protests before deciding whether to revise its sales target there, Katagiri said.
Japan’s three largest automakers plan to cut production to half of normal levels in China, the Nikkei newspaper reported today.
Mazda, the first Japanese automaker to report China sales, said on Oct. 4 deliveries in China dropped to 13,258 vehicles, meaning the company didn’t even match its sales during the aftermath of last year’s tsunami in Japan and floods in Thailand. Mitsubishi’s Chinese sales last month were the lowest since at least April 2011, when the company changed the way it counts China deliveries, spokesman Kai Inada said on Oct. 5.

Credit by Bloomberg

AMIDST EXCITING CARS LIKE THE HYUNDAI HB20 AND CHEVROLET ONIX, THE BLAND AND BORING TOYOTA ETIOS HATCHBACK IS A DUD SELLER IN BRAZIL

     In a telling tale of sorts, two major emerging car markets of the world, India and Brazil, have both given the thumbs down to the Toyota Etios hatchback, also known as the Liva in the Indian car market. In both these markets, the Etios hatchback has been comprehensively outsold by more contemporary looking cars. In Brazil, the Etios has been outsold by the likes of the Chevrolet Onix and the Hyundai HB20. In India too, cars like the Maruti Swift and the Hyundai i20 are running rings around the Liva hatchback when it comes to sales and it isn’t surprising at all.

The Etios platform was conceived as a low cost car platform mainly for emerging markets like India, Brazil and South Africa. While the cars showcased at the 2010 Indian Auto Expo garnered much excitement, the launch of the Etios sedan disappointed both prospective buyers as well as Brand Toyota fans in India. The over arching opinion about the Etios sedan and the Liva hatchback in India is one of Toyota overdoing the cost cutting bit. Both cars come with a tinny build quality that feels cheap while the interiors too are low rent items with none of the premium-ness that one tends to associate with Toyota cars in India.

While it is of another matter that Toyota is not exactly a premium brand in most parts of the world, the car maker’s focus on quality and premium pricing has meant that Indian car buyers now expect a modicum of finesse in every Toyota car sold in the country. It was this lack of finesse that has cost the Etios twins dearly and it isn’t market share alone that Toyota is losing by dishing out such insipid fare in the Indian car market. Mind share, a core aspect of branding is another thing that cars like the Etios and Liva will result in eroding for Toyota.

Cars like the Etios and the Liva has meant that Toyota is slipping from its position of being an aspirational brand that reeks of quality. While Toyota still has cars like the Innova, Corolla Altis and Fortuner to maintain the reputation it has earned in India, the Etios twins does leave one with a bad after taste of sorts. While Toyota plans to make amends by improving the quality of the Etios twins’ interiors in the coming months, the effort seems much like a half hearted one as it will take more than just revamped interiors to win back the Indian car buyer, who is being serenaded with cars like the Hyundai i20 and the Swift Dzire.

Toyota Etios Liva vs Maruti Swift video comparison

The Toyota Etios Liva is one of the most spacious premium hatchbacks and comes with the backing of the Toyota brand, which in India, is held in good regard by most buyers, but it doesn’t sell in very large numbers. The Maruti Swift is the largest-selling premium hatchback in India, again trusted by buyers because of Maruti’s reputation for low maintenance costs and large service network, with relatively trouble-free products.

How does the Toyota Etios Liva stack up against the most popular premium hatchback, the Maruti Swift? Here is a video comparison.

Just before the Toyota Etios Liva was launched, there was expectation that it would offer tough competition for the Swift. And then Maruti launched the new Swift with even more improvements.

Liva vs Swift: A close call for Swift or is it?

Liva, Toyota’s first attempt at cracking the small car market in India, promises to offer great space and good mileage at a good price. Swift already offers these, well, the exception of space. Plus it has excellent handling.

So which of the two – the Maruti Suzuki Swift or the Toyota Etios Liva is the better car overall?

Driving and handling

This has been Swift’s forte. Well-sorted chassis and wide tracks have made it the best handling car in the segment. The new Swift handles even better than the earlier version, and the petrol variant has a slightly more powerful engine. The petrol Swift has a 1.2 litre engine which puts out 86 bhp of power and 114 Nm of torque with a smooth shifting five-speed gearbox. The sharp steering and stiff suspension makes this a great car to drive. Even the diesel variant, with its 1.3 litre, 75 bhp engine, that puts out 190 Nm of torque, drives well.

But Liva is no slouch either—it too has pretty sharp handling. However, it’s not as powerful in terms of engine power. The petrol Toyota Etios Liva is powered by a 1.2 litre engine that puts out 79 bhp of power and 104 Nm of torque. The gearbox is smooth and the gear ratios are well-suited for city driving. It allows you to shift up faster and can pull easily in each gear. It does not feel as sporty as the Swift.

Overall, in terms of driving and handling the Swift is a better car than the Toyota Etios Liva.

Space and comfort

With Liva, Toyota never set out to create a Mini Cooper for Indians. Step inside the Liva, and you have a sense of “space” that some of the bigger sedans struggle to deliver. Swift with its cramped rear seats and smaller glass (window) area can feel a bit claustrophobic by comparison. Liva carries five people in great comfort. Swift doesn’t—it is best meant for four adults, that too if they don’t have long legs.

In terms of space and comfort, the Toyota Etios Liva is better than the Swift.

Looks

Swift’s success has much to do with its good—lovable—looks. Though the basic look remains the same, the new Swift is a bit more chiseled, has bit more presence, and with its somewhat larger dimensions, appeals to an even wider set of buyers.

Liva, which shares many of its features with the Etios sedan, has a bit more presence than its sedan sibling, but still is really no match for the Swift. Cost-cutting is visible on Liva’s insides in form of tacky plastics and wafer-thin seats, while the new Swift actually improves on reasonably good interiors. Here too, Swift wins hands down.

Overall, the Swift is a better package in terms of looks as well as fit and finish than the Toyota Etios Liva.

Features

Maruti has loaded the new Swift with plenty of features. In the diesel line up it has added a ZDI variant to match the petrol ZXI variants specifications. The ZDI/ZXI variants come with automatic climate control, electric mirrors, tilt-steering, integrated CD/USB audio system with steering audio controls, ABS, alloy wheels and two airbags.

Even the lower variants of the Swift such as the LXI get power steering. The VXI adds a tachometer and power windows. The Toyota Etios Liva, in comparison, doesn’t offer much. The base variant does not have power steering. The top variants don’t have features such as a multi-info display, electric mirrors or climate control – features that the Swift has.

In terms of features offered, the Swift is better than the Etios Liva.

Price, mileage and overall value for money

Variant for variant, the Maruti Swift is slightly cheaper than the Toyota Etios Liva, except for the base variant. Prices for the petrol variants of the Maruti Swift start at Rs. 4.2 lakh and go up to Rs. 5.50 lakh for the top-end Swift petrol. The Toyota Etios Liva petrol range starts at Rs. 4 lakh and goes up to Rs. 5.99 lakh.

When it comes to mileage, the petrol Swift has a claimed mileage of 18.6 kmpl to the Liva’s 18.4 kmpl. They’re both extremely good. Among the diesel variants, however, the Etios Liva diesel has a bit of an advantage, with Toyota claiming 24 kmpl for the diesel Liva, while the Swift diesel gives a claimed 22.9 kmpl.

Though the Etios Liva offers slightly higher mileage than the Swift the difference is too small to actually justify the price premium you pay for the Liva, given that the Swift also has more features variant for variant. In terms of running cost, the Etios Liva may be better in the long run.

The Liva petrol, even it delivers 15 kmpl in real-world conditions – and that’s a big if – will deliver Rs 4.3 per kilometer. Swift diesel, at 17 kmpl, has a running cost of Rs 2.5 per km. Swift petrol, on the other hand, at 14 kmpl, has a running cost of Rs 4.5 per kilometer (which is actually a little higher than Etios).

Overall, this makes the Swift more value for money than the Liva, but only marginally, given the Etios Liva’s good mileage claims.

Pros and cons

Verdict

While the above analysis seems to suggest that, for now, we could safely ignore the existence of Liva, this would be an incorrect conclusion. Swift holds a lot of cards but Liva has one that might matter to lots of people. If it’s your only car, as is the case with lots of us, and you often 5 people to carry, then it’s hard to beat Liva. But that alone might not be sufficient to challenge the market leader.

Credit by cartog.com

Long Live The King of Thailand

Today,I have changed my main topic posting "Thailand car news "due to there is special day in Thailand for our great king. On behalf of Thailand car news blog owner and my home join with the people of Thailand in humbly extending warm wishes to His Majesty The King on the occasion of his birthday. May he continue to reign over his people in health and happiness.

                               

During an elaborate and ancient coronation ceremony in 1950, the world's hardest - working monarch famously proclaimed that "I shall reign with righteousness for the happiness and benefit of the Siamese people."

For over six decades, His Majesty the King has devoted himself to improve the livelihood of his people. He also gave up a part of his Chitralada Palace to establish the royal research and demonstration center to conduct countless experiments for the sake of his subjects.

His Majesty has travelled to every nook and cranny in the country to listen to his subjects' problems and to restore the poor's livelihood with his simple yet visionary and pragmatic philosophy of self - sufficiency. Some of His Majesty's royal initiatives that guide the country to the sustainable path include the rice development project, royal rain, new agricultural theory, Chaipattana aerator, use of vetiver grass to prevent soil degradation and erosion, royal projects, iodine deficiency control project, lung disease and Tuberculosis (TB) prevention campaign, and development of alternative energy.

More than 3,000 royal innovations initiated by His Majesty the King in the areas of water and forest management, agriculture, and innovation are highly acclaimed by many international organizations worldwide. On top of that, United Nations (UN) also first presented the UNDP's Human Development Lifetime Achievement Award to His Majesty the King - Thailand's most - loved guiding light. His Majesty the King, the praiseworthy idol for many people around the world, is the first person in the world who receives such an honorable award.

Thailand International Motor Expo 2012, From 29-Nov-2102 to 10-Dec-2012

BANGKOK: -- A record number of orders are expected to be placed at this year's Thailand International Motor Expo, to be held at Challenger Hall, Muangthong Thani, from Friday to December 10.

Event organiser Kwanchai Paphatphong says the government's First Car Buyer Programme will continue to boost the auto market.
"The Motor Expo will serve as an important meeting place for auto buyers and sellers," he said.
The expo each time serves as the last car-buying event of the year, and auto companies often launch new models and offer highly attractive campaigns in order to maximise sales before the year ends.
  A total of 38 automobile and nine motorcycle brands are participating this year, and as much as 50,000 orders are expected to be placed.
  More than Bt55 billion is expected to be generated by the Motor Expo, and 1.6 million visitors, up from last year's 1.3 million, are expected.
"This year's Motor Expo will feature four future technologies, which are convenience, efficiency, safety and eco-friendly, and goes in harmony with our theme," he said.
The theme of this year's Motor Expo is "Meet Tomorrow's Cars Today".
"There is also a large number of highlights, including concept vehicles, that will be on show. A large number of automobile manufacturers will also be introducing new products," Kwanchai said.
  Among the auto brands participating are Audi, BMW, Brabus, Chevrolet, Citroen, Deva, DFSK, Ford, Grand Carryboy, Honda, Hyundai, Isuzu, Jaguar, Kia, Land Rover, Lexus, Mazda, Mercedes-Benz, Mini, Mitsubishi, Mitsuoka, MTM, Nissan, Peugeot, Proton, Ruf, Sammitr Green Power, Skoda, Ssangyong, Subaru, Suzuki, Tata, Toyota, Volkswagen, Volvo and Wiesman. Motorcycle brands include Honda, Yamaha, Kawasaki, Triumph, Benalli, Keeway, Ducati, UDA and Racing Boy.

CONCEPT VEHICLES AT THE EXPO

Hyundai HED-8
The HED-8 is the latest hybrid concept car from Hyundai, designed by the European Research and Development Centre of Hyundai in Germany. It was first shown at the Geneva Motor Show this year and will be unveiled across Asean at the Motor Expo 2012. HED-8 was designed under the concept of "Modern Premium". It is a compact (C-segment) modern luxury 4-seater sports coupe that focuses on aerodynamics with a "penthouse roof". It features LED headlights and large sports doors that swing open upwards. The HED-8's 1.0-litre three-cylinder gasoline engine produces a maximum power of 61hp plus another 109hp from an electric motor powered by a lithium-ion battery. In gasoline-electric hybrid mode, the HED-8 has a range of 700km with CO2 emissions of only 45g/km. Meanwhile, the range in EV mode is a respectable 120km. The top speed of the hybrid concept is 145 km/h.

Mazda Shinari
The Shinari is a 4-door sports concept sedan in the style of a coupe, developed under the "Kodo - Soul of Motion" design concept. The Shinari was first shown to the media at the Design Forum in Milan in 2010, and made its first public debut at the Los Angeles Auto Show that year. Shinari gained widespread admiration due to its modern and outstanding design. Mazda engineers dedicated exhausting hours in designing the vehicle, which is "influenced by the power that exists in nature, the graceful movements of wild animals, the swift movement of the cheetah while pouncing on a prey, and the fast and powerful movements of a kendo fighter".The interior is sporty with four bucket seats for a comfortable journey and a cockpit-like layout of instruments, controls and seating for the driver.

Nissan Esflow
Though employing the same technology as the Nissan Leaf - the world's first mass-produced family electric car - the Esflow concept is a RWD two-seater electric sports coupe, with truly sporty performance while retaining eco-friendliness. A generous glass area from the wrap-around windscreen and extended side windows back to the rear pillars gives the car a transparent look as well as good forward visibility. The proportions and lines of the new Esflow, especially its long nose, apparently share a lot of the DNA with the old Fairlady Z classic. The chassis is made from light-weight aluminium. Twin electric motors, mounted above the axis of the rear wheels in a mid-ship position, independently control the rear left and right wheels and produce enough torque for the Esflow to accelerate from 0-100 km/h in under 5 seconds.

Tata Megapixel
Developed by Tata design centres in India, the UK and Italy, the Megapixel concept is a small four-seater electric city car for the mega city, with an onboard petrol engine generator to recharge its lithium-ion phosphate battery on the move, enabling a range of up to 900km with a single tank of fuel. Hence the moniker "REEV" (Range Extended Electric Vehicle). CO2 emissions are just 22g/km and fuel economy is a staggering 100 km/litre under a combined driving mode.The integrated lamp and grille of the Megapixel sweep back over the front wheel arches to render a dynamic front end. Entry/exit is easy thanks to its double-sliding door system and B-pillar-less design. The car's electric drive has four independent electric motors, one at each wheel. When parking, the motors drive the wheels in opposite directions, while the front wheels can be turned nearly at right angles, enabling a remarkable 2.8-metre turning radius.

PRODUCTION VEHICLE HIGHLIGHTS

Honda Brio Amaze
Honda's latest eco-car (the 10th model that the company has launched this year) comes in four-door body style and is powered by the same 90hp 1.2-litre engine. Prices range from Bt454,000 to Bt521,000.

Range Rover
The Range Rover has long been considered the most capable production vehicle in the world, and this is the fourth-generation model. It has an all-aluminium monocoque structure, which is a first for an SUV body that helps to reduce the vehicle's weight by 420kg compared to its predecessor. The 4.4-litre V-8 turbo diesel engine produces 339hp.

Subaru XV
Subaru has finally launched the XV crossover, which is based on the Impreza sedan. The XV is made in Malaysia and exported to Thailand under the AFTA, in order to keep prices competitive. The XV is powered by a 2.0-liter DOHC Subaru boxer (horizontally opposed) engine mated to a new CVT automatic transmission.

Nissan Pulsar
Nissan is actively expanding its product line-up in Thailand and has unveiled the all-new Pulsar five-door hatchback, which would be officially launched next year. The Pulsar, featuring a "sports emotional" theme, comes with LED front and rear lights, and engine choices of 116hp 1.6-litre (HR16DE) or 131hp 1.8-litre (MRA8DE), each with a dual injector system mated to a CVT automatic transmission.

Mercedes-Benz
The new A-Class will be drawing a large number of new and younger customers to the Mercedes-Benz booth. The A250 AMG Sport, priced at Bt2.49 million, is powered by a 211hp turbocharged 2.0-litre engine with as much as 350Nm of torque. Acceleration from 0-100km/h takes 6.6 seconds and the top speed is claimed to be 240km/h. The normally aspirated A180, meanwhile, gets 122hp from a 1.8-litre engine and is priced at Bt1.89 million.

Volkswagen Amarok
The Amarok is the most expensive pickup truck sold in Thailand, retailing at approximately Bt1.8 million. It comes with a 2.0-liter Bi-Turbo TDI engine capable of producing 177hp and 420Nm, and is mated to an 8-speed ZF transmission. It also comes with the 4Motion all-wheel-drive system along with ABS brakes and Electronic Stability Programme.

MTM R8 Spyder
The beefed-up Audi R8 roadster has a 5.2-litre V-10 direct-injection engine that has been modified to increase power from 560 to 606hp, driving all wheels to accelerate the car from 0-100km/h in 3.7 secs and reaching a top speed of 325km/h.

RUF RT 35
The RUF RT 35 Anniversary commemorates the 35th anniversary of the German tuner. It is powered by a twin-turbo twin-intercooler 3.8-litre flat-six engine producing 630hp of max power and 833Nm of torque. It comes with 20-inch wheels (8.5 front and 11.0 rear).

Credit : Kingsley Wijayasinha The Nation

Volkswagen's parents' convey 'Thailand Vehicle' vehicles at separate injection of a fight 'Grey' debut first new pickup.

Thailand Company Limited automotive importer and distributor of Volkswagen cars Swakopmund packages. Official in Thailand "Thailand Automotive Group" revealed that Swarovski and Volkswagen AG of Germany. Know the condition of the fiercely competitive car market in the country. The parent company is trying to help the Thailand Automotive competitively. Is funding to support the motor vehicles sold in Thailand today. By the motor during the 29 days from 29 November -10 December 2555 at Challenger, Muang Thong Thani, will deliver benefits for consumers to order or buy Volkswagen Car Swarovski Christmas Holiday SEA models (Scirocco. ) and GTI (GTI) will offer a discount for more than one hundred thousand units over the government to tax the car for the first car one hundred thousand baht.

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Honda eyes tax rebate

Honda plans to introduce a new small car in the A-car segment before the tax rebate under the government's first-time car buyer programme ends this year.

Currently, five Honda models _ the Brio, Jazz, Jazz Hybrid, City and City CNG _ are qualified for the tax scheme rebate.

Customers can reserve a car to obtain the first-time car buyer tax rebate by Dec 31.

Honda Automobile (Thailand) will set another record in the automotive industry with the upcoming launch of its new A-car sedan. The new car model will be powered by a 1.2-litre, 4-cylinder, 16-valve, 90-horsepower engine and a storage trunk with room enough for two golf bags. It is also equipped with safety equipment including an anti-lock braking system and front dual SRS airbags. The new model will be another choice for customers in the fourth quarter, before the first-car tax rebate programme ends. Honda did not name the new car model or disclose its price.

CP Group lures China s SAIC to set up carmaking base here

Thailand's biggest agricultural conglomerate, Charoen Pokphand Group, has persuaded China's biggest carmaker Shanghai Automotive Industry Corporation (SAIC) to set up a manufacturing base for right-hand-drive vehicles in Thailand as well as expand its motorcycle manufacturing to capitalise on the creation of the Asean Economic Community (AEC) in 2015.

SAIC has approached CP Group to be its partner here to set up a factory aimed at exports not only to Asean countries but other destinations as well. They are looking for a location for the production base. Initially, production capacity in Thailand would be 300,000 units per year.

SAIC is China's biggest auto-maker, with annual production capacity of 4 million units and sales of US$54 billion (Bt1.67 trillion). It is ranked as the world's seventh-biggest carmaker.

In addition, the group will expand its motorcycle production under the Dayang brand. A location is being sought in Thailand for the plant. However, that expansion plan will focus on the local Thai market. The group's motorcycle plant in Luoyang, in central China's Henan province, produced 1.6 million units last year, of which 25 per cent were exported and the remainder sold in the domestic market.

It is expected that details of the Thailand investment and location will be finalised by the third quarter of the year.

Thanakorn Seriburi, vice chairman of the CP Group, said yesterday that the two sides were negotiating business cooperation. SAIC sent a team to conduct a feasibility study on investment in Thailand while CP is considering its stake in this joint venture, planning to hold 30-40 per cent.

He added that SAIC planned to set up Thailand as its production base for the MG brand, focusing on right-hand-drive vehicles. The company took over this brand from a British carmaker. Initially, production capacity is set for 50,000 units per year with exports to Asean, Australia and New Zealand.

"The project has come after Prime Minister Yingluck Shinawatra's recent visit to China. The executives of 14 leading Chinese companies also met her on a one-to-one basis to learn more about trade and investment facilitation," Thanakorn said.

"SAIC is interested in forming a business partnership with CP. We are proud to be attracting foreign investors to the Kingdom."

In addition, the group is looking for a location to set up a manufacturing facility, where it plans to transfer technology from China.

Thanakorn said CP's motorcycle business hoped for 10 per cent of the total market of 2 million units. The retail price of its motorcycles will be Bt20,000-Bt30,000, which will be focused on the upcountry market.

CP Group's investment in China focuses on five businesses: integrated food from feed through processing food under its Chia Tai brand, agricultural community projects, retail business via CP-Lotus, dealership of Caterpillar heavy machines, and motorcycle manufacturing.

Recently, the group has been granted permission in Henan province to build the Chiatai International Plaza Civic Centre of Luoyang, a mega-project. Started last year, this five-year project comprises a government centre and business and shopping centre, with an investment of Bt20 billion (4 billion yuan). Inside the compound there will be four high-rise buildings 40-55 storeys tall, eight condominiums, a 170,000-square-metre shopping complex and 140,000sqm government office centre.

The group's agricultural community has been set up in three provinces in China - Beijing, Shandong and Guangdong - for pigs, chickens and a pork-processing plant. It also plans to expand to six or seven areas this year. However, lack of manpower has been a problem and has prompted the group to focus more on training people to serve the business, as each project covers 10,000 rai (1,600 hectares).

However, CP-Lotus will make aggressive moves this year after having suspended outlet expansion for four or five years because of its failure in small cities. The group currently manages 75 shops, of which 50 are in Shanghai and Guangdong.

"We are learning more about operating business in China. We will employ more local Chinese staff in the cities rather than getting staff from a big city to control the management," Thanakorn said.

In addition, the group's heavy-machinery dealership under the Caterpillar brand is growing well with sales set to reach Bt50 billion this year, up from Bt40 billion last year.