Thailand's Automotive Industry Recovers and Prepares for Export Growth
Thailand's Automotive Industry Recovers and Prepares for Export Growth

Thailand is the ASEAN Automotive Hub, with the largest vehicle assembly capacity and high-quality parts manufacturing capability from any country in the region.

Rebounding from last year’s flood crisis, Thailand’s automotive industry which was devastated including parts and accessories saw potential growth in the export market through increased production and innovation.

Manufacturers such as Honda, Toyota and Chevrolet have been fast in their recovery, which ultimately increased investment and demand from the global economy.

Innovation and New Product Development

As there has been speedy growth, new products are being launched by car-makers with attention towards Eco-friendly or hybrid cars in support of Thailand to be an Eco-car production powerhouse. The top 5 companies taking part in this initiative are Honda, Toyota, Suzuki, Nissan and Mitsubishi.

Current popular hybrid or Eco-cars are:

• Nissan March

• Honda Brio

• Suzuki Swift

• New Honda Jazz hybrid

Also recently this year, Mitsubishi launched its first and new global compact car – Mirage with exports to Japan in July this year and then to the ASEAN, European and other markets respectively.

Auto parts

There are around 1,800 automotive parts suppliers in Thailand, of which around 700 are available as OEMs.

For exports, the auto parts industry is rather complicated and difficult. Many automotive manufacturers in Thailand already have exclusive contracts with their customers and cannot produce for their competitors also. Also small manufacturers cannot cope with large and specialized orders.

However, the Thai Department of Trade, just this year hosted the Thailand Auto Parts & Accessories 2012 (TAPA 2012) trade fair featuring auto parts & components (OEM/REM), auto accessories, petroleum /lubricants/maintenance products, tools & machines and even vehicles focused on promoting items to buyers and importers from around the world.

Some of the major products and services that were on displays included:

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Latest in the Automotive Industry News
Latest in the Automotive Industry News

The latest in automotive industry news is that Nissan has big plans. Just when the Indian car market is sparked to heat up, one of the major car manufacturers in the world, Nissan, has made some big plans. Nissan Motor India Pvt. Lts. has opened a new corporate office. The location is T. Nagar, Chennal. The person at the helm of leadership will be Kiminobu Tokuyama. Also present at the inaugural were representatives of the Nissan partnership, Renault Nissan Automotive India Private.

Nissan has big plans. One of these is the fact that they will cover 85 per cent of the Indian market by the year 2012. This will evolve as a result of the proposed 11 operating dealerships being in place by the end of this year. This number is expected to increase to 55 dealers in two years.

Another lofty goal Nissan hopes to attain is in exportation. Next year the car manufacturer plans to outsource $20 million in components and double this amount within two years. Along with this goal Nissan plans to export cars. They plan to export to countries until they reach 100 worldwide.

According to automotive industry news, Nissan will begin producing the Global Compact car in their Indian facility next year. Nissan has made it clear that they plan to be a major player in the Indian market just as they have been in the United States and other countries. The production of the compact car will happen in their new corporate facility in India. The 10,000 square feet building will offer employment to 56 people. Another goal is to nearly double this number by the next year. The new facility offers state-of-the-art everything. This, along with artsy interiors and open work-stations will contribute to the culture promoting an open feeling and spreading …

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