Thailand's Booming Car Industry: Detroit Of The East

[webfact]

Thailand's booming car industry
Detroit of the East

BANGKOK: -- IT MADE for interesting pictures, but for Japanese carmakers it was a catastrophe. When floodwaters in late 2011 inundated parts of Bangkok and several of Thailand’s main industrial areas, the firm’s manufacturing plants were among those that suffered most. Some were covered by as much as three meters of water.

The floods highlighted something not widely known—and which has become even more pronounced since: Thailand is the “Detroit of the East”. And it is Japanese carmakers in particular that use the country as a manufacturing hub. In 2012 production reached 2.45m vehicles of which 1m were exported. This made Thailand the 7th largest car exporter globally.

The rise of Thailand’s car industry is no accident. After Asia’s financial crisis in 1997 the country did away with much regulation in the sector; unlike in India or Malaysia, foreign firms do not need to enter joint ventures with local partners.

Full story: http://www.economist.com/blogs/schumpeter/2013/04/thailands-booming-car-industry

-- The Economist 2013-04-05

[ZhouZhou]

waiting for the forum experts telling me why Thailand industry is actually doomed.

[OZEMADE]

I notice that the ISUZU MU7 in Thailand is now being sold in Australia with a Holden emblem as a 7-LS 4X4 SUV.

[chainarong]

waiting for the forum experts telling me why Thailand industry is actually doomed.

They will only stay till they can get cheaper labour, infrustucture else where, Vietnam springs to mind, the mekong Delta crowed are moving that way, at the end of the day it's not the climate that attracted industry to Thailand.

[1Ping1]

Soooooo..... Last yr they had a big push for gov paid first time car buyers.

Soooooo.... This year they state plan to change side of road you drive on. Plus adding you cannot legally sell car w right hand steering once law in affect.

Also. As a nuckle head, that "cheap" conversion from right to left hand drive is anything but cheap.

What smells here???? Yeah I would say great for manufacturing as all converting to left hand steering.

I'd also be pretty peeved if I just bought a new car and then found out I cannot resell.....

[cbuddha]

Soooooo..... Last yr they had a big push for gov paid first time car buyers.

Soooooo.... This year they state plan to change side of road you drive on. Plus adding you cannot legally sell car w right hand steering once law in affect.

Also. As a nuckle head, that "cheap" conversion from right to left hand drive is anything but cheap.

What smells here???? Yeah I would say great for manufacturing as all converting to left hand steering.

I'd also be pretty peeved if I just bought a new car and then found out I cannot resell.....

Check the day that article on right hand steering was posted again.

[oldsailor35]

waiting for the forum experts telling me why Thailand industry is actually doomed.

They will only stay till they can get cheaper labour, infrustucture else where, Vietnam springs to mind, the mekong Delta crowed are moving that way, at the end of the day it's not the climate that attracted industry to Thailand.

And every man and his dog is putting his hand out for a 'cut'

[oldsailor35]

Next will be BOEING falling to the "asian hub" probably starting with those wonderful military balloons which cannot get off the ground, so they might as well equip them with some of those hand held mine detectors which the army bought, rather than leave such valuable military hardware locked in armoury's.

[grantbkk]

It is actually a huge insult to be called "Detroit of Asia".

[Thait Spot]

Exports are down.

I am sure that domestic sales will be massively less this year.

We shall see!

[chainarong]

waiting for the forum experts telling me why Thailand industry is actually doomed.

They will only stay till they can get cheaper labour, infrustucture else where, Vietnam springs to mind, the mekong Delta crowed are moving that way, at the end of the day it's not the climate that attracted industry to Thailand.

And every man and his dog is putting his hand out for a 'cut'

Not to mention sovergn risk , one or two coups generally sends them packing, continued government interference and changing policies, other than that you're good till another kid on the block comes along, actually your industry and financial area's is the only thing that keeps you from having your sex trade as the most income producing industry , not like 1999

[bigbamboo]

Then they could call BKK Rot Town.

[ongchart]

waiting for the forum experts telling me why Thailand industry is actually doomed.

They will only stay till they can get cheaper labour, infrustucture else where, Vietnam springs to mind, the mekong Delta crowed are moving that way, at the end of the day it's not the climate that attracted industry to Thailand.

Its not that simple - labor cost is but just a small part of the overall considerations. There is a huge support industry needed to make the whole car manufacturing plant tick. The plant assembles hundreds of parts made by qualified suppliers. There is also skilled workers to be trained, and all the physical infrastructure to be built.

[metisdead]

Off topic posts and replies have been removed.

[jamhar]

Detroit of the East

D'oh!

Couldnt you have said "Motown"?

I dont know ANYONE that wants to be associated with "Troit" right now

Edit:

Sorry gbkk did not see your similar post.

Edited April 5, 2013 by jamhar

[LuckyLew]

great gig selling cars in Thialand

you get to sell them all twice

Get commission when you sell they to buyer using gov't rebate scheme

then you resell them again when the get repossessed (sp)

[bkk_mike]

Thailand's car industry only exists because of the massive import duty on cars from elsewhere. (lessened for Asean a few years ago, but only after Thailand already had a significant parts manufacturing industry and car factories located here.)

If anything, it's the parts manufacturers that are the reason the car factories didn't leave after the floods.

Indonesia will be the future largest car market in Asean, simply because of it's population, but with the issues of distributing vehicles from around the archipelago, it wouldn't surprise me if Thailand remained the major car manufacturing base in Asean for a long time.

[davofromoz]

Soooooo..... Last yr they had a big push for gov paid first time car buyers.

Soooooo.... This year they state plan to change side of road you drive on. Plus adding you cannot legally sell car w right hand steering once law in affect.

Also. As a nuckle head, that "cheap" conversion from right to left hand drive is anything but cheap.

What smells here???? Yeah I would say great for manufacturing as all converting to left hand steering.

I'd also be pretty peeved if I just bought a new car and then found out I cannot resell.....

Soooo, do I buy a car now or wait until next yr? Surely they can't force everyone to change conversion if the car was manufactured ad registered that way or we will see a lot of dumped cars or a massive drop in market prices for secondhand cars.

[F430murci]

Nor sure that aiming to be like Detroit is a very lofty aspiration.

[jbrain]

Soooooo..... Last yr they had a big push for gov paid first time car buyers.

Soooooo.... This year they state plan to change side of road you drive on. Plus adding you cannot legally sell car w right hand steering once law in affect.

Also. As a nuckle head, that "cheap" conversion from right to left hand drive is anything but cheap.

What smells here???? Yeah I would say great for manufacturing as all converting to left hand steering.

I'd also be pretty peeved if I just bought a new car and then found out I cannot resell.....

Soooo, do I buy a car now or wait until next yr? Surely they can't force everyone to change conversion if the car was manufactured ad registered that way or we will see a lot of dumped cars or a massive drop in market prices for secondhand cars.

Common guys, don't keep us laying on the floor in laughter any longer. You both taking the piss with your comments......................or not ?

[kevvy]

waiting for the forum experts telling me why Thailand industry is actually doomed.

especially the ones who dont live in Thailand

[siampolee]

Well the sales figures from the current motor show here in Thailand are indeed very dismal to say the least.

[Bluespunk]

isn't detroit bankrupt or close to it at the moment? though such lofty ambitions do help explain the rice scheme?

[muttley]

waiting for the forum experts telling me why Thailand industry is actually doomed.

They will only stay till they can get cheaper labour, infrustucture else where, Vietnam springs to mind, the mekong Delta crowed are moving that way, at the end of the day it's not the climate that attracted industry to Thailand.

And every man and his dog is putting his hand out for a 'cut'

Not to mention sovergn risk , one or two coups generally sends them packing, continued government interference and changing policies, other than that you're good till another kid on the block comes along, actually your industry and financial area's is the only thing that keeps you from having your sex trade as the most income producing industry , not like 1999

You write as though you don't live here, is that the case?

[Berkshire]

waiting for the forum experts telling me why Thailand industry is actually doomed.

They will only stay till they can get cheaper labour, infrustucture else where, Vietnam springs to mind, the mekong Delta crowed are moving that way, at the end of the day it's not the climate that attracted industry to Thailand.

I doubt that you wishing it to happen will make it happen. The only threat to Thailand within the region is Indonesia. And even they are largely inferior, according to the article:

[According to a recent study by the Boston Consulting Group, Thailand

beats Indonesia on almost all important metrics: competitiveness,

infrastructure, business environment, tax incentives, labour cost and so

on.]

[Thai at Heart]

waiting for the forum experts telling me why Thailand industry is actually doomed.

They will only stay till they can get cheaper labour, infrustucture else where, Vietnam springs to mind, the mekong Delta crowed are moving that way, at the end of the day it's not the climate that attracted industry to Thailand.

When all the associated infrastructure is in place it isn't so simple to up sticks and leave. Minimum in Korea I heard yesterday was 90 USD per day, and they still make plenty of cars and other stuff.

[ginjag]

As mentioned massive import duty on bringing a car in etc, no other alternative is there, so what the government then do is put ( example) 200,000 bht approx on honda Jazz, this is the figure selling here for upto 750,000 bht, and U.K. 550, 000 bht. choices you buy one giving the greedy the extra-or walk. or m/c or local transport.

[looping]

Maybe someday Thailand will muster the initiative to build their own cars, either by reverse engineering someone else's car design (amazed it hasn't already happened), or by, dare I say it, coming up with something original.

The current situation of manufacturing someone else's cars because of tax incentives, cheap labour or location, doesn't seem like something they should be proud of.

Sounds like they're clutching at straws.