The government is determined to propel the development of the local automotive industry so it keeps pace with the fast-growing industries of China and India, says Prime Minister Abhisit Vejjajiva.

"However, the government's policies and the private sector's implementation must go together to develop the industry and reach mutual understanding for development," he said yesterday at the Thailand International Motor Expo 2009 at Impact Muang Thong Thani.

Some investors may seek to change investment criteria as energy and technology aspects have altered, but the government must avoid revisions that hurt existing promoted projects, he said.

In the energy field, the government's 15-year plan to improve energy efficiency and address global warming calls for renewable energy to rise from 6% of consumption to 20% by 2022, he said.

"It's a plan that we can achieve but measures should be revised to ensure success," said the premier.

Over the next four to five years, the measures will focus on applying technology in renewable energy such as ethanol, biofuels, hydrogen and biogas, which will increase steadily.

New-technology pilot projects for renewable energy will be promoted to help strengthen local communities, and finally the projects will lead to the promotion of new technologies on a broader scale.

The government continues to promote the use of NGV (natural gas for vehicles) but its use has been limited mainly to public transport vehicles, since the small number of NGV filling stations cannot accommodate many private vehicles yet.

Mr Abhisit said the downturn had hurt many sectors this year but government stimulus measures, including the Thai Khem Kaeng programme, had resulted in a steady improvement since the low point of the first quarter. GDP is now expected to grow by 3-4% in the first quarter next year.

But growth will be affected by oil prices, unemployment, foreign-exchange rates and some countries' unsolved financial problems, he said.

The industrial production utilisation rate was still low when the crisis began and it was fortunate that foreign investments continued, he said. In the automotive industry, parent companies placed more orders while workers laid off late last year were brought back this year after the economy began recovering.

This was a good sign for the industry and it will lead to the recovery of the economy as a whole, he said.

But government stimulus measures could not continue for too long, he said. "Action from the private sector is more helpful. We are confident that investment from the private sector will return to normal next year and this will be a key engine to help drive the economy."

To prepare for sustainable development, economic recovery cannot solely depend on the government, he added.