Bright prospects for Thai automobile exports

[webfact]

Bright prospects for Thai automobile exports
By Digital Content



BANGKOK, Aug 12 -- Nantawan Sakuntanak, director-general of the Department of International Trade Promotion, said she still saw a bright prospect for Thai automobile exports. She said the country remains the most interesting investment destination in Southeast Asia.

Ms Nantawan said that the department continued to expect the value of automobile exports to grow by 10 per cent to more than US$20 billion and auto parts to increase by 10 per cent as well, to more than US$13 billion this year.

The automotive industry is benefiting from Board of Investment economic stimulation measures and promotional privileges on automobile investment projects, including the second-phase eco-car scheme.

Ms Nantawan said that Thailand remains the most favourable destination in ASEAN for investors thanks to its standard of skilled labor and its role as an international logistics centre.

From June to December this year Thailand will produce nearly 500,000 vehicles, increasing by 9.4 per cent from its production from March to May.

The department predicts Thailand will produce 2.2 million vehicles this year.

Its main markets are Australia, Saudi Arabia, Indonesia, the Philippines, Malaysia, the United Arab Emirates, Chile, New Zealand, Oman and Laos.

Its major competitors are Germany, Japan and Korea. Ms Nantawan said Thailand has the edge for its potential production of pickup trucks and eco-cars. (MCOT online news)

[tna]2014-08-12[/tna]

[chainarong]

As long as major manufactures look for cheap labour,  infrastructure and opportunities they will always be around, it's when Thailand become the use by date that thing's will change , when a new kid on the block arrives it will be goodbye Thai , In the meantime enjoy .

[Tomtomtom69]

As long as major manufactures look for cheap labour,  infrastructure and opportunities they will always be around, it's when Thailand become the use by date that thing's will change , when a new kid on the block arrives it will be goodbye Thai , In the meantime enjoy .

 

I agree, however, Thailand can at least continue to rely on it's own domestic market as long as the prohibitive tariffs on foreign imports remain in place (even if they were reduced slightly over time). Tariffs are the main reason why Thailand's local automotive manufacturing industry, dominated by foreign car makers continues to enjoy the range of success it does, particularly in the home market. Also notable is that the main export markets indicated in the article above either have no local car manufacturing industry, although some of them may have had one in the past (e.g. Saudi Arabia, Laos, Oman, New Zealand) or a rapidly declining one (Australia). Malaysia's local car manufacturing industry largely complements that of Thailand with it's own Proton and Perodua brands and making smaller eco-cars and sedans, whereas Thailand makes pickup trucks for the Malaysians.
 

[timber]

An interesting play on words.  "She said the country remains the most interesting investment destination in Southeast Asia."  At times one of the most interesting investment opportunities in the World.

[BSJ]

Manufacturers are always looking at the cheapest cost of production so eventually places like Bangladesh, Myanmar and Zimbabwe will get a shot at hosting a car assembly plant.

[jacko45k]

Flooded factories forgotten already!

[Chris Lawrence]

It’s the Detroit of Asia. Or Thailand’ acre of diamonds.

[moonwolf]

so what cars/trucks do they make there then ?

[I knew this would happen]

"major competitors are Germany, Japan and Korea." ??? 

 

Eeeerrr how does this work? If Thailand would have OWN car makers then these countries would be competitors. How can Japan be a competitor when Thailand produces cars for them and their brands? Thailand´s competitors are neighbouring countries with cheaper labour and maybe some other rebates also trying to lure foreign investors. 

 

Whenever news about Thailand´s car industry are released it always sounds like the Thais think Mitsu, Honday and Toyota belongs to them.......... 

 

 

Edited August 13, 2014 by I knew this would happen

[IAMHERE]

As long as major manufactures look for cheap labour,  infrastructure and opportunities they will always be around, it's when Thailand become the use by date that thing's will change , when a new kid on the block arrives it will be goodbye Thai , In the meantime enjoy .

IF Thailand is low cost labor, why does it still have slavery ?

[Evolare]

Ecocars from thailand? Really which once??

[HiSoLowSoNoSo]

 

As long as major manufactures look for cheap labour,  infrastructure and opportunities they will always be around, it's when Thailand become the use by date that thing's will change , when a new kid on the block arrives it will be goodbye Thai , In the meantime enjoy .

IF Thailand is low cost labor, why does it still have slavery ?

 

 

Cost cutting?

[Cake Monster]

Thailand may be looking forward to a purple patch in the Auto sector, but several large manufacturers have already made decisions to move there production plants to alternative SE Asia countries, or to curtail any future investment in Thailand.

Such things as high labour costs and over heads, along with a lack of any future infrastructure initiative from the Government have been cited for these moves.

 

[belg]

if only those countries would levy 307% luxery tax for the exported cars, same same as thailand does when you try to import a descent car overhere

[JacChang]

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"major competitors are Germany, Japan and Korea." ??? 

 

Eeeerrr how does this work? If Thailand would have OWN car makers then these countries would be competitors. How can Japan be a competitor when Thailand produces cars for them and their brands? Thailand´s competitors are neighbouring countries with cheaper labour and maybe some other rebates also trying to lure foreign investors. 

 

Whenever news about Thailand´s car industry are released it always sounds like the Thais think Mitsu, Honday and Toyota belongs to them.......... 

 

 

 

I think they are referring to competition within the manufacturing plants, not the brand itself. Just like BMW South Africa would compete with BMW Germany.

 

I am surprised though, China wasn't listed as one of the competitors. Because most of these big brand Japanese, source out their manufacturing to some Chinese name automobile manufacturing factory, Nissan is a big one with their teanas.