Thailand’s automotive industry beats expectation in growth despite the country’s continuous political standoff that undermined investors’ confidence and divided citizen in two sides since a bloodless coup d’état in 2006.

The Federation of Thai Industry (FTI) expressed concerns that, with the fast growing rate, the industry will be running out cheap iron sheeting material, which currently imported under the Thai-Japanese economic agreement quota, throughout the second half of the year.

“We did not expect this fast growing rate at a negotiation table in Tokyo,” said Suparat Siriwannangkul, president for the industry. “However, we do not expect price to rise unreasonably by the manufacturers due to the market’s fierce competition.”

The FTI initially forecasted the country’s capacity of auto production at 1.4 million units for 2010, with regard of the current economic condition and political situation.

The federation has revised up the country’s auto production to 1.5 million to 1.6 million units, from full its capacity of 1.8 million units.

Sale at the domestic market is expected to top 650 thousand units this year and the export market is expected at 900 thousand units.

In the meantime, the federation’s spokesman for automotive industry, Surapong Paisitpatpong, reported the country’s auto export from January through April was 63 percent higher than the same period a year ago.

Shipments to the Southeast Asia market grew from 20 percent last year to 60 percent this year, while shipments to the EU climbed from six percent to eight percent.

The country’s total production of automotive from January through April 2010 was 487 thousand units, up 93 percent from the same period a previous year.