A Toyota dealer, Chan Lertprasertpakorn, has emerged as a major shareholder of Yanapund, a leading auto parts manufacturer, by raising his stake to 12.08 per cent.

"This is for a long-term investment. I did not expect to become a major shareholder because the proportion of my shares was small. I purchased shares because the stock price is low and I should get a good return from this investment," he said yesterday.

He built up his holding to 193.41 million shares from 3.6 million shares, or 0.2 per cent, by buying 189.91 million shares from Champlong Phanpanit, according to a filing to the Securities and Exchange Commission.

Her stake was reduced to 19.57 per cent from 29.87 per cent.

Chan said he made the investment because the parts industry is expected to benefit from the economic recovery in the second half, which would further stoke vehicle demand.

Some carmakers in Thailand and Japan have started re-employing workers, while the eco car project should also provide work for parts makers including Yanapund, he said.

The company's stock was undervalued, he said.

Kim Eng Securities (Thailand) said in a research note that the auto parts industry next year should shift up a gear in line with the global economy recovery.

The rebound in auto sales has also encouraged parts manufacturer Thai Rung Union Car to believe that its 2009 revenue should not slide beyond expectations.

Thai Rung managing director Sompong Phaoenchoke said the revenue drop should not be more than 20 per cent.

Vehicle production will turn positive in the second half, and capacity utilisation would climb back to 85-90 per cent in the middle of next year, the same level as last year he said.

Thai Rung has rehired workers in response to the pickup in the auto industry.

The company plans to assemble limousines in two months, pending approval of the Industry Ministry, he added.