Thailand's War With The Uk

[thaicbr]

OK. I couldn't find data for Thailand to give you a good price comparison, so here is data from Malaysia, which offers similar tariffs to encourage local manufacture. Their local car industry is probably more competitive since they have several mass production local brands, although its a much smaller market. Labour costs are significantly higher here, as well, I think.

Anyway:

Hyundai Electra, locally manufactured: 85,000 ringgit (about 850K Baht) (about 27,800 US)

Slightly higher spec vehicle in the US: approx. US$ 17,800

The Proton Preve (slightly lower spec vehicle) sells for RM 58,000 (about 19,000)

It wasn't available in the US. The equivalent, say a Ford Fiesta, about 13,000 US.

Whether the manufacturers spend the difference on inefficient practices, or quick return on capital, it is the consumer that pays for the tariffs, whether he buys an import or a locally manufactured vehicle. And fair enough, because the manufacturers have to pay for their investment quickly, as the tariffs may be reduced in the future.

SC

Ford Fiesta Thailand 549 to 584,000 baht. Malaysia 642,307 baht

I think I converted everything right. You can check it out they are both on line.

http://www.ford.co.t...ions/price-list

http://www.ford.net.my/fiesta/

So the Ford Fiesta sells for about US$ 21,000, converting in my head - due to the import tariffs, this is much higher than US price. But why does the Proton, which does not attract import tariffs, sell for so much? Because it can.

Similarly locally built cars in Thailand. I am sure you have the time to look up and compare the prices of imported cars versus comparable locally built cars in Thailand, and you will find the prices differences much less than the amount of the tariffs. Now I don't know whether the car companies use their inflated price to pay for inefficient production (you say not, and that Thai factories are as efficient as those anywhere else; I don't know) or they may pay off their investments very quickly because of the risk of tariffs being lifted, or they may use it to pay bribes to politicians and so forth to compensate for the difficulty of doing business in Thailand, or they may channel the profits back to the home country, possibly in the form of subsidised exports rather than cash remittances - that would satisfy a government keen to boost production and balance of payments, and would be less visible external scrutiny

SC

Do I have this right?

1. Car companies use their inflated prices to pay for inefficient production. Apparently this is no longer just Thailand but now this also occurs in Malaysia too.
   
2. Foreign car companies pay off their investments very quickly because they are afraid of tariffs being lifted.
   
3. They use the profits in Thailand to pay bribes to politicians and so forth to compensate for the difficulty of doing business in Thailand. That is of course against the law in almost every country in the world.
   
4. The profits are channeled back to the home country US, Japan,Germany (all in on the scam). in the form of subsidized exports rather than cash remittances - that would satisfy a government keen to boost production and balance of payments, and would be less visible external scrutiny. This too is of course against the laws of the US, Japan and Germany.
   

Blimey. This is getting deep.. I thought this was war.war.war from the killer Op

sent from my ..................#

[chiangmaikelly]

Ford Fiesta Thailand 549 to 584,000 baht. Malaysia 642,307 baht

I think I converted everything right. You can check it out they are both on line.

http://www.ford.co.t...ions/price-list

http://www.ford.net.my/fiesta/

So the Ford Fiesta sells for about US$ 21,000, converting in my head - due to the import tariffs, this is much higher than US price. But why does the Proton, which does not attract import tariffs, sell for so much? Because it can.

Similarly locally built cars in Thailand. I am sure you have the time to look up and compare the prices of imported cars versus comparable locally built cars in Thailand, and you will find the prices differences much less than the amount of the tariffs. Now I don't know whether the car companies use their inflated price to pay for inefficient production (you say not, and that Thai factories are as efficient as those anywhere else; I don't know) or they may pay off their investments very quickly because of the risk of tariffs being lifted, or they may use it to pay bribes to politicians and so forth to compensate for the difficulty of doing business in Thailand, or they may channel the profits back to the home country, possibly in the form of subsidised exports rather than cash remittances - that would satisfy a government keen to boost production and balance of payments, and would be less visible external scrutiny

SC

Do I have this right?

1. Car companies use their inflated prices to pay for inefficient production. Apparently this is no longer just Thailand but now this also occurs in Malaysia too.
   
2. Foreign car companies pay off their investments very quickly because they are afraid of tariffs being lifted.
   
3. They use the profits in Thailand to pay bribes to politicians and so forth to compensate for the difficulty of doing business in Thailand. That is of course against the law in almost every country in the world.
   
4. The profits are channeled back to the home country US, Japan,Germany (all in on the scam). in the form of subsidized exports rather than cash remittances - that would satisfy a government keen to boost production and balance of payments, and would be less visible external scrutiny. This too is of course against the laws of the US, Japan and Germany.
   

Blimey. This is getting deep.. I thought this was war.war.war from the killer Op

sent from my ..................#

30% of autos made in the UK are exported to Asia. That is big bucks.

Edited October 19, 2012 by chiangmaikelly

[thaicbr]

CMK said:

30% of autos made in the UK are exported to Asia. That is big bucks.

Really! What cars. What countries?

Also how many cars manufactured in the US are exported to Asia?

The android app and its number of tabs strikes again ... grrr

sent from my ..................#

[chiangmaikelly]

CMK said:

30% of autos made in the UK are exported to Asia. That is big bucks.

Really! What cars. What countries?

Also how many cars manufactured in the US are exported to Asia?

The android app and its number of tabs strikes again ... grrr

sent from my ..................#

I don't know. Why don't you start a thread on the number of US cars that are exported to Asia.

[endure]

CMK said:

30% of autos made in the UK are exported to Asia. That is big bucks.

Toyota in the UK has exported one particular variant of one of their models to Japan in the past. I don't think they do so any more.

[WilliaminBKK]

Saying 30% to Asia without naming the country is misleading since Turkey, Cyrpus, UAE, Israel, India are probably included.

[thaicbr]

CMK said:

30% of autos made in the UK are exported to Asia. That is big bucks.

Really! What cars. What countries?

Also how many cars manufactured in the US are exported to Asia?

The android app and its number of tabs strikes again ... grrr

sent from my ..................#

I don't know. Why don't you start a thread on the number of US cars that are exported to Asia.

So you dont think its relevant??? I mean the first question not thr second (even though I do think its relevant)

sent from my ..................#

[StreetCowboy]

OK. I couldn't find data for Thailand to give you a good price comparison, so here is data from Malaysia, which offers similar tariffs to encourage local manufacture. Their local car industry is probably more competitive since they have several mass production local brands, although its a much smaller market. Labour costs are significantly higher here, as well, I think.

Anyway:

Hyundai Electra, locally manufactured: 85,000 ringgit (about 850K Baht) (about 27,800 US)

Slightly higher spec vehicle in the US: approx. US$ 17,800

The Proton Preve (slightly lower spec vehicle) sells for RM 58,000 (about 19,000)

It wasn't available in the US. The equivalent, say a Ford Fiesta, about 13,000 US.

Whether the manufacturers spend the difference on inefficient practices, or quick return on capital, it is the consumer that pays for the tariffs, whether he buys an import or a locally manufactured vehicle. And fair enough, because the manufacturers have to pay for their investment quickly, as the tariffs may be reduced in the future.

SC

Ford Fiesta Thailand 549 to 584,000 baht. Malaysia 642,307 baht

I think I converted everything right. You can check it out they are both on line.

http://www.ford.co.t...ions/price-list

http://www.ford.net.my/fiesta/

So the Ford Fiesta sells for about US$ 21,000, converting in my head - due to the import tariffs, this is much higher than US price. But why does the Proton, which does not attract import tariffs, sell for so much? Because it can.

Similarly locally built cars in Thailand. I am sure you have the time to look up and compare the prices of imported cars versus comparable locally built cars in Thailand, and you will find the prices differences much less than the amount of the tariffs. Now I don't know whether the car companies use their inflated price to pay for inefficient production (you say not, and that Thai factories are as efficient as those anywhere else; I don't know) or they may pay off their investments very quickly because of the risk of tariffs being lifted, or they may use it to pay bribes to politicians and so forth to compensate for the difficulty of doing business in Thailand, or they may channel the profits back to the home country, possibly in the form of subsidised exports rather than cash remittances - that would satisfy a government keen to boost production and balance of payments, and would be less visible external scrutiny

SC

Do I have this right?

1. Car companies use their inflated prices to pay for inefficient production. Apparently this is no longer just Thailand but now this also occurs in Malaysia too.
   
2. Foreign car companies pay off their investments very quickly because they are afraid of tariffs being lifted.
   
3. They use the profits in Thailand to pay bribes to politicians and so forth to compensate for the difficulty of doing business in Thailand. That is of course against the law in almost every country in the world.
   
4. The profits are channeled back to the home country US, Japan,Germany (all in on the scam). in the form of subsidized exports rather than cash remittances - that would satisfy a government keen to boost production and balance of payments, and would be less visible external scrutiny. This too is of course against the laws of the US, Japan and Germany.
   

1. Correct. And when they are exposed to international competition from the most efficient producers, prices come down, the inefficient companies lose money and go to the wall, or improve to the level of the competition. That'snot speculation, that's fact. I know from experience, being British.

2. Car companies will take into account the risk of the trade environment changing when making investments. Do you believe that they do not? Therefore investments that do not rely on current arbitrarily favourable conditions will be allowed a longer payoff time.

3. From what I read on this forum, Thailand is a corrupt environment where such things may be necessary. Perhaps the legal environment in Thailand is as clear, efficient, fair and free from corruption as that in Japan, UK, Germany or the US, for example, in which case I struggle to see how politicians can make ends meet on the pitiful salaries that they get.

4. Is it against the law in Thailand? Again, it is subject to the vagaries of their internal transfer pricing and cost allocation.

These things (1,2 and 4) will take place anywhere that manufacturers can charge a price that allows them to do so. To think 3. will take place anywhere it is necessary.

A more interesting discussin, which might have allowed us to better trumpet the successes of the Thais, would have been to consider how and why Thailand has been so successful in attracting inward investment in the motor manufacturing business, compared to its peers and neighbours - Vietnam, Malaysia, Indonesia, Philippines

SC

[theslime]

Canadians are oddballs everyone one I've ever met.

Canadian,s are Oddballs,comma everyone. full stop One I,ve ever met. So you have met one Canadian and have formed an opinion that their all Oddballs.

[WilliaminBKK]

Canadians are oddballs everyone one I've ever met.

Canadian,s are Oddballs,comma everyone. full stop One I,ve ever met. So you have met one Canadian and have formed an opinion that their all Oddballs.

Theslime, no worries looks like the troll has been given a holiday he was on a crusade on other threads as well.

[NeverSure]

OK. I couldn't find data for Thailand to give you a good price comparison, so here is data from Malaysia, which offers similar tariffs to encourage local manufacture. Their local car industry is probably more competitive since they have several mass production local brands, although its a much smaller market. Labour costs are significantly higher here, as well, I think.

Anyway:

Hyundai Electra, locally manufactured: 85,000 ringgit (about 850K Baht) (about 27,800 US)

Slightly higher spec vehicle in the US: approx. US$ 17,800

The Proton Preve (slightly lower spec vehicle) sells for RM 58,000 (about 19,000)

It wasn't available in the US. The equivalent, say a Ford Fiesta, about 13,000 US.

Whether the manufacturers spend the difference on inefficient practices, or quick return on capital, it is the consumer that pays for the tariffs, whether he buys an import or a locally manufactured vehicle. And fair enough, because the manufacturers have to pay for their investment quickly, as the tariffs may be reduced in the future.

SC

Ford Fiesta Thailand 549 to 584,000 baht. Malaysia 642,307 baht

I think I converted everything right. You can check it out they are both on line.

http://www.ford.co.t...ions/price-list

http://www.ford.net.my/fiesta/

A basic Ford Fiesta in the US has an MSRP of US $13,200 - 405k baht.

I'm just curious as to whether the ones sold in Asia have the same emissions standards and safety standards?

http://usnews.rankingsandreviews.com/cars-trucks/Ford_Fiesta/

[chiangmaikelly]

Saying 30% to Asia without naming the country is misleading since Turkey, Cyrpus, UAE, Israel, India are probably included.

And crucially, only 45% of its exports are for the European market, with 30% heading to Asia and just over 10% to North America. In contrast, the automotive industries of Italy, France and Spain sell 70% to 90% of their cars within the EU.

http://theloadstar.co.uk/uk-builds-its-car-business-but-other-exporters-fear-the-logistics/

[Orac]

Saying 30% to Asia without naming the country is misleading since Turkey, Cyrpus, UAE, Israel, India are probably included.

And crucially, only 45% of its exports are for the European market, with 30% heading to Asia and just over 10% to North America. In contrast, the automotive industries of Italy, France and Spain sell 70% to 90% of their cars within the EU.

http://theloadstar.c...-the-logistics/

I would assume the France and Spain figures include domestic sales as to as they are in the EU.

[WilliaminBKK]

Saying 30% to Asia without naming the country is misleading since Turkey, Cyrpus, UAE, Israel, India are probably included.

And crucially, only 45% of its exports are for the European market, with 30% heading to Asia and just over 10% to North America. In contrast, the automotive industries of Italy, France and Spain sell 70% to 90% of their cars within the EU.

http://theloadstar.c...-the-logistics/

Why is that crucial ? please explain in detail

You really don't like the UK do you ?

[chiangmaikelly]

A more interesting discussin, which might have allowed us to better trumpet the successes of the Thais, would have been to consider how and why Thailand has been so successful in attracting inward investment in the motor manufacturing business, compared to its peers and neighbours - Vietnam, Malaysia, Indonesia, Philippines

SC

Australia, France, New Zealand, Pakistan (including East Pakistan, now Bangladesh), the Philippines, Thailand, the United Kingdom, and the United States. Were all members of SEATO. In 1965 Thailand asked for assistance and most of the members responded. During that process the US built the East coast of Thailand to serve as the petrol/gas and communication station of the Vietnam war. So Thailand got a number of things that the rest of SEA did not get. Infrastructure (deep water port, airfields refineries), large injection of cash (In 1969 more American Air Force troops were stationed in Thailand than Vietnam). Also the American presence was to insure the stability of the Thai government which did not change violently like Vietnam, Laos and Cambodia. The Americans left as per the request of Thailand in 1975 and left a country ready to make and ship a lot of cars among other things.

[chiangmaikelly]

Saying 30% to Asia without naming the country is misleading since Turkey, Cyrpus, UAE, Israel, India are probably included.

And crucially, only 45% of its exports are for the European market, with 30% heading to Asia and just over 10% to North America. In contrast, the automotive industries of Italy, France and Spain sell 70% to 90% of their cars within the EU.

http://theloadstar.c...-the-logistics/

Why is that crucial ? please explain in detail

You really don't like the UK do you ?

The article quoted is from The Loadstar company in the UK and is positive towards the UK auto industry.

Perhaps if you read what I posted instead of chasing bogey men you might have a better understanding of the topic under discussion.

I however am not employed as your reader today. If you want to find out what crucial refers to - read the article.

As far as my feelings about the UK? I have none one way or the other. A substantial portion of the Auto industry in the UK is in competition in Asia and that is what this thread is about.

[StreetCowboy]

Saying 30% to Asia without naming the country is misleading since Turkey, Cyrpus, UAE, Israel, India are probably included.

And crucially, only 45% of its exports are for the European market, with 30% heading to Asia and just over 10% to North America. In contrast, the automotive industries of Italy, France and Spain sell 70% to 90% of their cars within the EU.

http://theloadstar.c...-the-logistics/

Why is that crucial ? please explain in detail

You really don't like the UK do you ?

I think he was saying that, like the Germans, British cars attract a premium through their differentiation that allows them to compete in distant markets, even when there are barriers against them. French and Spanish cars, on the other hand, are competitively manufactured commodity vehicles for the local market - and benefit from the barriers that the EU sets up around its own market.

Its interesting to compare the way in which the UK has modernised its industry, compared to say, France. The UK basically closed down its inefficient indigenous mass production commodity auto industry and imported foreign manufactury, which acheived higher levels of production. The French retained their historic manufacturers and brands, and upgraded them. As I say - interesting, but irrelevant to this thread. Probably a more informative discussion, though, and possibly more helpful to a constructive criticism of the Asian situation through analogy and comparison.

SC

[WilliaminBKK]

Saying 30% to Asia without naming the country is misleading since Turkey, Cyrpus, UAE, Israel, India are probably included.

And crucially, only 45% of its exports are for the European market, with 30% heading to Asia and just over 10% to North America. In contrast, the automotive industries of Italy, France and Spain sell 70% to 90% of their cars within the EU.

http://theloadstar.c...-the-logistics/

Why is that crucial ? please explain in detail

You really don't like the UK do you ?

The article quoted is from The Loadstar company in the UK and is positive towards the UK auto industry.

Perhaps if you read what I posted instead of chasing bogey men you might have a better understanding of the topic under discussion.

I however am not employed as your reader today. If you want to find out what crucial refers to - read the article.

As far as my feelings about the UK? I have none one way or the other. A substantial portion of the Auto industry in the UK is in competition in Asia and that is what this thread is about.

I didn't ask you to read for me, I wanted to know why YOU feel it is crucial that ONLY 45% are exported to the EU ? what does that have to do with anything you export where there is demand.

[StreetCowboy]

A more interesting discussin, which might have allowed us to better trumpet the successes of the Thais, would have been to consider how and why Thailand has been so successful in attracting inward investment in the motor manufacturing business, compared to its peers and neighbours - Vietnam, Malaysia, Indonesia, Philippines

SC

Australia, France, New Zealand, Pakistan (including East Pakistan, now Bangladesh), the Philippines, Thailand, the United Kingdom, and the United States. Were all members of SEATO. In 1965 Thailand asked for assistance and most of the members responded. During that process the US built the East coast of Thailand to serve as the petrol/gas and communication station of the Vietnam war. So Thailand got a number of things that the rest of SEA did not get. Infrastructure (deep water port, airfields refineries), large injection of cash (In 1969 more American Air Force troops were stationed in Thailand than Vietnam). Also the American presence was to insure the stability of the Thai government which did not change violently like Vietnam, Laos and Cambodia. The Americans left as per the request of Thailand in 1975 and left a country ready to make and ship a lot of cars among other things.

I think the reason for the relative success in recent years compared to Malaysia was the Malaysian response to the currency crisis of 1997 - 1999. Also, I think Malaysia had established a reputation for corruption and for poor payment which discouraged investment.

I am not sure how the relative reputations of the two countries stands now.

SC

[chiangmaikelly]

I didn't ask you to read for me, I wanted to know why YOU feel it is crucial that ONLY 45% are exported to the EU ? what does that have to do with anything you export where there is demand.

I could care less. I was quoting an article from a UK company called The Loadstar. If you read the posts before responding you would know. If you want to know what crucial refers to read the article.

http://theloadstar.c...-the-logistics/

[GuestHouse]

CMK if you disagree that Thai import duties on cars (upto 326% of the free on board price of imported vehicles manufactured outside of Thailand) is a financial barrier to importing cars from overseas, an incentive to assemble in Thailand and a prtotetion to the Thai auto industry from other manufacturers importing vehicles to Thailand.

What then do you believe is the impact of such high import tarrifs?

Edited October 20, 2012 by GuestHouse

[chiangmaikelly]

My first thoughts. I think it makes people buy motorcycles and use public transportation.

Thailand is moving toward an industrial society with new population centers springing up. Large buses pick up the workers three times a day for shifts and they live in bedroom communities a ways away from the factories because of the air pollution.

It would be nice to see Thailand giving some of the money from the import duties to fund public transportation although I don't see this happening.

The change is coming. The days of the family farm are over and rice could be produced with a fraction of the labor that is currently being used.

Edited October 20, 2012 by chiangmaikelly

[GuestHouse]

You don't see any link between inport duties and the rational to assemble cars in Thailand, rather than simply export to Thailand?

And you don't see any link between import duties and competion/ proffitability in Thailand's auto industry?

[StreetCowboy]

My first thoughts. I think it makes people buy motorcycles and use public transportation.

But surely they would just buy the cheap and efficiently manufactured vehicles from Thailand, which were one third to one half of the price of imported vehicles, because they did not attract the tariffs and yet were so competitively manufactured and priced. Or perhaps either

a) they are not efficiently manufactured, and therefore cannot be sold cheap, or

b ) they are not competitively priced, as the manufacturers can maintain wide margins in the absence of foreign competition

SC

It's interesting that motorcycles do appear to be competitively priced here, perhaps reflecting a more easily-entered market that could be addressed (and perhaps is) by indigenous manufacturers. Perhaps there is an over-capacity of supply locally already...

[StreetCowboy]

My first thoughts. I think it makes people buy motorcycles and use public transportation.

Thailand is moving toward an industrial society with new population centers springing up. Large buses pick up the workers three times a day for shifts and they live in bedroom communities a ways away from the factories because of the air pollution.

It would be nice to see Thailand giving some of the money from the import duties to fund public transportation although I don't see this happening.

The change is coming. The days of the family farm are over and rice could be produced with a fraction of the labor that is currently being used.

Hypothecation is not widely practised; the exchequer collects revenue according to policy, and distributes for expenditure according to policy. There is no linkage between the subsidy provided to transport and the number of cars imported. Unfortunately, I think it is policy in Thailand to subsidise public transport at the expense of the Operator, rather than funding that subsidy from central funds (hence the dilapidation of SRT)

SC

[chiangmaikelly]

You don't see any link between inport duties and the rational to assemble cars in Thailand, rather than simply export to Thailand?

And you don't see any link between import duties and competion/ proffitability in Thailand's auto industry?

I think cars are assembled in Thailand or any other country for that matter to avoid duties and other taxes and transportation costs. 1. Jaguar Land Rover (JLR) is hoping to manufacture cars outside the UK for the first time, including at a new plant in China Jaguar Land Rover reported a 91 percent rise in overall sales in China, as the carmaker confirmed plans for more production in export markets. 2. Tata owned Jaguar-Land Rover has officially opened its first assembly plant in India. The factory will initially build Land Rover Freelanders from parts imported from Britain, but will later source components from India.

I don't see any link between import taxes and funding production. It would be too complicated to pull off. Nor do I see any collusion between the government and manufacturers. The government is too messed up to be able to accomplish this. Even when everybody knows who to bribe and how much they can't get it done right.

[StreetCowboy]

You don't see any link between inport duties and the rational to assemble cars in Thailand, rather than simply export to Thailand?

And you don't see any link between import duties and competion/ proffitability in Thailand's auto industry?

I think cars are assembled in Thailand or any other country for that matter to avoid duties and other taxes and transportation costs. 1. Jaguar Land Rover (JLR) is hoping to manufacture cars outside the UK for the first time, including at a new plant in China Jaguar Land Rover reported a 91 percent rise in overall sales in China, as the carmaker confirmed plans for more production in export markets. 2. Tata owned Jaguar-Land Rover has officially opened its first assembly plant in India. The factory will initially build Land Rover Freelanders from parts imported from Britain, but will later source components from India.

I don't see any link between import taxes and funding production. It would be too complicated to pull off. Nor do I see any collusion between the government and manufacturers. The government is too messed up to be able to accomplish this. Even when everybody knows who to bribe and how much they can't get it done right.

Price gouging does not require collusion. It requires barriers to competition.

[chiangmaikelly]

My first thoughts. I think it makes people buy motorcycles and use public transportation.

But surely they would just buy the cheap and efficiently manufactured vehicles from Thailand, which were one third to one half of the price of imported vehicles, because they did not attract the tariffs and yet were so competitively manufactured and priced. Or perhaps either

a) they are not efficiently manufactured, and therefore cannot be sold cheap, or

b ) they are not competitively priced, as the manufacturers can maintain wide margins in the absence of foreign competition

SC

It's interesting that motorcycles do appear to be competitively priced here, perhaps reflecting a more easily-entered market that could be addressed (and perhaps is) by indigenous manufacturers. Perhaps there is an over-capacity of supply locally already...

They make a lot of cars here one just does not see them in Bangkok. I see 20 or 30 every day. Not expensive. I'm too lazy or I would go and take a photo now as there are three at the end of my street right now. They look like jeeps with high ground clearance and big tires. It seems it takes nothing to license a car here. And of course the motorbikes with the side cars are big and can carry 4 people or a half ton of supplies.

So there are lots of cheap cars around. My old GF bought a great used Toyota for 200,000 baht. Everything worked and it didn't use oil. Great car. Payment was 4.000 a month included insurance and maintenance.

Big used car market where I live and not expensive. New motorbike 2,000 per month or used car 4,000. Well within the budget of most Thai families.

[chiangmaikelly]

You don't see any link between inport duties and the rational to assemble cars in Thailand, rather than simply export to Thailand?

And you don't see any link between import duties and competion/ proffitability in Thailand's auto industry?

I think cars are assembled in Thailand or any other country for that matter to avoid duties and other taxes and transportation costs. 1. Jaguar Land Rover (JLR) is hoping to manufacture cars outside the UK for the first time, including at a new plant in China Jaguar Land Rover reported a 91 percent rise in overall sales in China, as the carmaker confirmed plans for more production in export markets. 2. Tata owned Jaguar-Land Rover has officially opened its first assembly plant in India. The factory will initially build Land Rover Freelanders from parts imported from Britain, but will later source components from India.

I don't see any link between import taxes and funding production. It would be too complicated to pull off. Nor do I see any collusion between the government and manufacturers. The government is too messed up to be able to accomplish this. Even when everybody knows who to bribe and how much they can't get it done right.

Price gouging does not require collusion. It requires barriers to competition.

New car 500,000 baht or good used car 200,000 baht. Gouging? I don't see it. All the new cars of the same kind are roughly the same price as are motorbikes. I don't see much discounting but I assume that is because of high demand.

[StreetCowboy]

You don't see any link between inport duties and the rational to assemble cars in Thailand, rather than simply export to Thailand?

And you don't see any link between import duties and competion/ proffitability in Thailand's auto industry?

I think cars are assembled in Thailand or any other country for that matter to avoid duties and other taxes and transportation costs. 1. Jaguar Land Rover (JLR) is hoping to manufacture cars outside the UK for the first time, including at a new plant in China Jaguar Land Rover reported a 91 percent rise in overall sales in China, as the carmaker confirmed plans for more production in export markets. 2. Tata owned Jaguar-Land Rover has officially opened its first assembly plant in India. The factory will initially build Land Rover Freelanders from parts imported from Britain, but will later source components from India.

I don't see any link between import taxes and funding production. It would be too complicated to pull off. Nor do I see any collusion between the government and manufacturers. The government is too messed up to be able to accomplish this. Even when everybody knows who to bribe and how much they can't get it done right.

Price gouging does not require collusion. It requires barriers to competition.

New car 500,000 baht or good used car 200,000 baht. Gouging? I don't see it. All the new cars of the same kind are roughly the same price as are motorbikes. I don't see much discounting but I assume that is because of high demand.

The point is that new cars produced in the highly efficient Thai factories are roughly the same price as comparable cars produced overseas and subject to >100% import duty; there is some differential, but not 100%. The Thai vehicles clearly have a much greater margin (or much higher manufacturing cost...). The used car price similarly reflects the inflated market, bearing in mind the price that the used car cost, when it was new...

However, small motorcycles are cheaper here than elsewhere, reflecting a genuinely competitive market and efficient sales and distribution. Because this is possible using lower capital investment local production technologies. If Thailand had a genuinely competitive auto industry and an efficient and competitive market, then the cars that are produced here would be comparable in price locally to similar cars overseas.

I imagine the Department of Transport is grateful for that, since it does something to throttle the demand for new cars and contain congestion.

SC