Automotive opportunities in Thailand

An Expert's View about Automobile in Thailand

Posted on: 2 Sep 2010

Latest overview of market potential for the automotive sector in Thailand.

Sector briefing Automotive Opportunities in Thailand Why Thailand? th Thailand ranks 14 in the world in terms of automobile production volume. Virtually all of the world?s major vehicle manufacturers are represented in Thailand. Together they produced nearly 1.0 million vehicles and over 1.6 million motorcycles in 2009. In Q1 of 2010, Thailand saw a significant increase in production volumes, of 92% and 25% in automobile and motorcycles production respectively, compared to the same period in 2009. In recent years, the automotive industry accounted for 12% of the overall gross potential opportunities and an introduction to domestic product (GDP). It is one of other relevant issue. Thailand?s largest industry clusters, employing more than th300,000 people. In addition to the ?Thailand ranks 14 in the major vehicle manufacturers, Thailand is home world in terms of automobile to 2,000 auto-parts manufacturers, of which 700 are OEMs, with several testing and R&D production volume. Almost 1 facilities of major players, such as Toyota, million cars and trucks and Yamaha, Bridgestone, Honda, Maxxis and 1.6 motorcycles were Michelin. produced in 2009? Find general information on the Thai market conditions on UKTI?s website. The Doing Business Guide for Thailand gives an overview of Thailand?s economy, business culture, UK Trade & Investment Sector briefing: Automotive opportunities in Thailand New technology vehicles Opportunities As part of the Thai government?s efforts to attract vehicle manufacturers to shift their There are business opportunities to be won in production of greater fuel efficient technology, the automotive sector in Thailand, as the such as hybrid drive and brake energy industry continues to grow despite the global regeneration, to Thailand, the Board of financial crisis. Some of the opportunities are Investment is offering maximum investment in the following areas: incentives, which include exemption of import duty on machinery and corporate income tax NGV Initiatives holidays of between 5-7 years. So far Toyota With the rise in energy costs the Thai appears to be the only vehicle manufacturer to government is looking to alternative fuels as produce cars with higher energy saving the answer. The Ministry of Energy has technology in Thailand, i.e. Camry Hybrid. subsequenty supported fuel efficient transportation through a natural gas vehicle Automotive Electronics (NGV) initiative. Most of the automotive electronics used in cars produced in Thailand are imported. Given the This initiative involves the introduction of market size and the limited number of 10,000 natural gas-powered taxis, natural gas automotive electronics producers in Thailand, subsidisation and exemption from import the market appears to offer opportunities to duties on new natural gas powered vehicles, overseas suppliers. parts and components used in such vehicles. For example, there is a requirement to replace Auto Parts Industry the ageing diesel-powered bus fleet in Bangkok There are over 2,000 automotive parts with new natural gas powered bus. The suppliers in Thailand. Around 700 of them are Ministry of Transport is planning to acquire OEM?s. Many of them are international 4,000 such buses. companies, such as Valeo, Bosch, TRW, GKN and Denso. There are potential business Eco-car Programme opportunities for UK suppliers of machinery, In addition to the NGV initiative, the Thai machine tools and other materials in this government is also promoting the production of market. eco-car or fuel-efficient car through investment and tax incentives. The guidelines for Eco-car If you have any, questions on the opportunities are engine displacement not exceeding 1,300 above, contact the UKTI contacts named in this cc for petrol-powered and 1,400 cc for diesel- report. Business opportunities aimed powered, fuel consumption of 5 litres per 100 specifically at UK companies are added daily to km, EURO4 emission standards, carbon dioxide UKTI?s website. These leads are sourced by our emission of 120 grams per kilometre and able staff overseas in British Embassies, High to run on E20 or 20% ethanol fuel. Commissions and Consulates, across all sectors and in over 100 markets. The response to the programme has been strong. Six major automakers, mostly You can be alerted to business opportunities on Japanese, have received approvals for their a regular basis by registering on the UKTI investments that will add aroung 685,000 website. Find out more on UKTI?s business vehicles per year to the prodution capacity. opportunities service on the UKTI website The first eco-car rolled off the Nissan assembly line early this year. Other automakers are expected to follow within this year. Automotive Production Number of E-85 Vehicles Volume in 2009 Vehicles Another alternative fuel initiative is the Passenger cars 313,442 promotion of the production of E-85 (using 1-ton pick-up trucks 670,734 85% ethanol) vehicles through tax incentives. For example, a 3-year tax exemption on import Commercial vehicles 15,202 duties of autoparts used in the production of Total 999,378 such vehicles and reduction on excise tax on E- Motorcycles 1,635,249 85 cars and E-85 fuel. Source: Thailand Automotive Institute UK Trade & Investment Sector briefing: Automotive opportunities in Thailand Major events and activities UKTI contacts Automotive Manufacturing 2009 - ASEAN's Attakorn Saropala only machinery expo for automotive parts Trade & Investment Manager th manufacturing - 7 edition. British Embassy Bangkok (www.automanexpo.com) Tel: (0066 2) 305 8237 Contact: Reed Tradex Ltd, Bangkok Email: Attakorn.Saropala@fco.gov.uk Email: automan@reedtradex.co.th www.ukti.gov.uk Time: 24-27 June 2010 Paul Reid th Bus & Truck 2010/AEV 2010 ? The 7 Deputy Director of Trade and Investment Commercial and Special Purpose Vehicle British Embassy Bangkok th Exposition/the 4 Alternative Energy Vehicle Tel: (0066 2) 305 8294 Exposition. [www.busandtrucks.com] Email: Paul.Reid@fco.gov.uk Contact: TTF International Co Ltd, Bangkok www.ukti.gov.uk Email: ttf@thaitradefairs.com Time: 4-6 November 2010 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Automotive opportunities in Thailand Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Thai market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in Thailand, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Automotive opportunities in Thailand
Posted: 02 September 2010

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