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The new Toyota Hilux Vigo & Fortuner A / T 5 Speed. Thailand is secondlargest producer and market of pickup trucks in the world.
Thailand – manufacturing base for 600-million consumer market By: Alan Tran
Thailand is well on the road to reaching the governmentsupported industry target production of three million units a year by 2017. Record local and export sales in 2012 saw the country become the world’ s 10th-biggest producer of motor vehicles.
Now the country is positioning itself as the hub for production for the 600-million consumers in the ASEAN Economic Community( AEC). The 10 ASEAN member countries making up a massive single market and production base are Thailand, Singapore, Malaysia, Indonesia, Vietnam, Cambodia, Laos, Myanmar, Brunei and the PhilippinesSix of the ASEAN
Nissan’ s newly-developed 3-cylinder HR12DE Engine for its
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members – Thailand, Malaysia, Indonesia, Philippines, Singapore, and Brunei have been completely duty free since Jan 2010. The remaining four will have dropped all duties by 2015. For 2015 is the target to complete free flow of investment, capital, people, services etc. This will open doors for automotive enterprises in Thailand to enjoy easy access throughout a“ seamless AEC market of 600 million consumers,” according to the The Thailand Board of Investment( BOI).
Extensive government support is helping fuel the country’ s auto sector, which accounts for 12 % of Thailand’ s gross domestic product( GDP). The Thailand Board of Investment’ s( BOI) investment promotion policy“ is to promote sustainable development” to enhance the country’ s competitiveness in science and technology and encourage the improvement of manufacturing quality as well as reduce environmental impact,” Ajarin Pattanapanchai, Deputy Secretary General Thailand Board of Investment( BOI) told Automotive Industries. Automotive is the nation’ s largest export sector, with an estimated value of US $ 23.7 bn.. In 2012 vehicles accounted for the bulk of exports, at 69 % of the total, followed by OEM engines( 28 %), and then spare parts( 3 %). The market for OEMs and component suppliers based in Thailand is much greater than the AEC. Thailand ships automotive products to more than 170 countries, with Asia absorbing 32 % of exports. Japan is the top single-country destination, with Indonesia, Australia, the Philippines and Malaysia completing the top five export destinations.
According to Pattanapanchai, there are still opportunities in the market. Thailand imports about US $ 8 billion worth of auto parts annually. Government is offering a range of incentives designed to attract as much of this manufacturing volume to Thailand as possible. At the same time, it is geared up to leverage on Thailand’ s electronics industry by attracting investment in new automotive technologies.“ Sophisticated electronic components are the next great phase of emphasis in Thailand’ s robust automotive industry. As consumers demand increasingly smarter vehicles, the R & D and production activity in the country’ s automotive electronics sector continues to expand, with unlimited high-tech investment opportunities,” says Pattanapanchai.
Described as“ a sector wide open for business growth,” opportunities for Thai automotive electronic component manufacture include: systems for controlling power or engine and transmission electronics, safety systems, chassis and suspension
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