Thailand's move from trucks to parts and beyond
With all the hoopla over China's auto industry, Thailand, which is more known among Westerns for its tourist industry than manufacturing capabilities, quietly made more than one million vehicles last year. The country is Asia's third largest exporter of vehicles after Japan and South Korea, with much of its success attributed to its government's relaxed attitude towards foreign investors. Unlike China, automakers such as General Motors or Toyota are not required to partner with a domestic firm. Low production costs makes it simple to mass-produce vehicles, primarily trucks, to export to countries like South America and Australia. Interestingly, a study by Japan shows Thai-built vehicles have better quality than those built in China or India.
Thai industry is diversifying, however, realizing a potential weakness in only manufacturing trucks. Toyota has made the country the center for its International Multi-purpose Vehicle, a single platform on which it will base many of its vehicles. The country is increasingly manufacturing and selling car parts and kits. Finally, the government is approaching the U.S. to negotiate the 25 percent duty it currently imposes on all foreign trucks.
[Source: International Herald Tribune]
Reader Comments (Page 1 of 1)
Mark 4:16PM (5/20/2006)
Small correction: the import duty is on two-door trucks, i.e. Land Rover Defender and most pick-ups. That is why there are no pickups imported to the US. Four door trucks don't have import duties.
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Koba 5:12PM (5/20/2006)
Well, I am eager to see if the tariff is dropped myself, I have been wanting a real truck for ages. Something mid-size with a long bed, 5spd, and a 4 cyl. diesel engine. I really love the hilux, or would also like a D-Max, it's a shame that only ginormous trucks get respect in this country, but I guess that's just a fact of life since oil is so cheap.
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Razib Ahmed 5:33PM (5/20/2006)
Yes Thailand is a big producer and Thai trucks are famous in Asia. I know that to the western people Thailand is mainly a tourist place but in South and South East Asia, Thailand is known as an important trade hub and production hub.
Another major producer of vehicles in Asia which is not famous in USA is India. According to OICA (The International Organization of Motor Vehicle Manufacturers) statistics, 1,511,157 were produced in India in 2004 (http://www.southasiabiz.com/2006/05/asian_cars_riding_high_what_ab.html) which is I think even higher than Thailand.
Tata Motors has taken a very ambitious plan to introduce a car with the price of Rs 1 lakh (nearly $2,000) in the Indian market within the next few years (http://www.southasiabiz.com/2006/05/worlds_cheapest_car_to_be_prod.html) and if it is produced then it will be the cheapest car in the world.
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Howard Kerr 6:36PM (5/20/2006)
Wow, what a bummer. A country that is all but "swimming" in oil, and they have massive car import tariffs? I guess with Australia being reasonably close-by, they have to protect their own country's small car industry or everyone might start buying large Ozzie V8s.
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Rene Curry 11:47PM (5/20/2006)
Thailand allows foreign investment as long as you agree to export or have a percentage of domestic content. It's time the US uses mirror policies.
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mavkato 5:07PM (5/21/2006)
@ #2 Koba:
The Isuzu D-Max is the same as the Chevy Colorado/GMC Canyon/Isuzu i-Series. They are all built on the GMT355 Platform.
http://en.wikipedia.org/wiki/GM_GMT_platform#GMT_355
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Jake 3:26AM (5/22/2006)
"Interestingly, a study by Japan shows Thai-built vehicles have better quality than those built in China or India."
Interestingly enough, we live in an era where the obvious needs to be studied. :->
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S.M.Mehdi Hassan 7:55AM (5/23/2006)
Honestly, I also did not know that Thailand has such a thriving auto industry. I know it more as a tourist spot. There are not too many countries in South Asia that exports vehicles. True that India produce cars but those are not that good quality. My family has been using a Toyota Sprinter '88 model for the last thirteen years and it still works well.
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raymond smith 11:16PM (6/01/2006)
can I buy an fj cruiser in thailand and are they built there?
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Steve Dunno 12:18AM (6/05/2006)
Yes, India makes a lot of vehicles but 80% of them are tiny little subcompacts. Thailand on the other hand makes real cars and trucks that can be exported anywhere.
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