Automotive Opportunities

An Expert's View about Non-Automobile Transport Equipment in Thailand

Last updated: 17 Jun 2011

Thailand ranks 12th in the world in terms of automobile production volume in 2010, 3 places above the UK.

Sector briefing Automotive Opportunities in Thailand Why Thailand? th Thailand ranks 12 in the world in terms of automobile production volume in 2010, 3 places above the UK. Virtually all of the world?s major automakers are represented in Thailand. Together they produced over 1.6 million vehicles and over 2.0 million motorcycles in 2010, an increase of 67% and 24% respectively. In Q1 of 2011, Thailand saw an increase of 22% and 19% in automobile and motorcycles production volume compared to the same period in 2010. Out of the 1.6 million vehicles, 65% were one-ton pick-up trucks. Thailand is the leading manufacturers of one-ton pick-up trucks outside the United Find general information on the Thai market States. Thailand also exported over £7 billion conditions on UKTI?s website. [insert link to worth of automotive parts in 2010, an increase country landing page]. The Doing Business of 33% over 2009. Guide for Thailand [ link to country Business Guide ? to be added by web team] gives an In recent years, the automotive industry overview of Thailand?s economy, business accounted for 12% of the overall gross culture, potential opportunities and an domestic product (GDP). It is one of introduction to other relevant issue. Thailand?s largest industry clusters, employing th ?Thailand ranks 12 in the more than 300,000 people. In addition to the world in terms of automobile major automakers, Thailand is home to 2,000 auto-parts makers, of which 700 are OEMs and production volume. Over 1.6 several testing and R&D facilities of major million cars and trucks and players, such as Toyota, Yamaha, Bridgestone, 2.0 million motorcycles were Honda, Maxxis and Michelin. produced in 2010? UK Trade & Investment Sector briefing: Automotive opportunities in Thailand Another alternative fuel initiative is the Opportunities promotion of the production of E-85 (using 85% ethanol) vehicles through tax incentives. There are business opportunities to be won in For example, a 3-year tax exemption on import the automotive sector in Thailand, as the duties of autoparts used in the production of industry continues to grow despite the global such vehicles and reduction on excise tax on E- financial crisis. Some of the opportunities are 85 cars and E-85 fuel. Similarly to the eco-car in the following areas: programme, the market opportunity will be to work with the global player, mainly Japanese, NGV Initiatives in supplying E-85 compatable engine With the energy cost on the rise, the Thai technology. government is looking to alternative fuel as the answer. The Ministry of Energy has New technology vehicles subsequenty supported fuel efficient As part of the Thai government?s efforts to transportation through compressed natural gas attract automakers to shift their production of vehicle (NGV) initiative. higher fuel efficient technology, such as hybrid drive and brake energy regeneration, to This initiative involves the introduction of Thailand, the Board of Investment is offering 10,000 compressed natural gas-powered taxis, maximum investment incentives, which include natural gas subsidisation and exemption from exemption of import duty on machinery and impot duties on new compressed natural gas corporate income tax holidays of between 5-7 powered vehicles, parts and components used years. The market opportunity for this in such vehicles. For example, there is a segment is still very limited, as hybrid vehicle requirement to replace aging diesel-powered has just recently been introduced into the Thai bus fleet in Bangkok with new compressed market. So far Toyota appears to be the only natural gas powered bus. The Ministry of automaker to produce cars with higher energy Transport is planning to acquire 4,000 such saving technology in Thailand, i.e. Camry buses. Hybrid and Prius. There could be opportunity for UK manufacturers who are already in the Eco-car Programme hybrid supply chain for Toyota to explore In addition to the NGV initiative, the Thai possibility of manufacturing operation in government is also promoting the production of Thailand. eco-car or fuel-efficient car through investment and tax incentives. The guidelines for Eco-car Motorcycles are engine displacement not exceeding 1,300 Although the motorcycle market in Thailand is cc for petrol-powered and 1,400 cc for diesel- dominated by motorcycles of engine size less powered, fuel consumption of 5 litres per 100 than 125 cc but over the past few years bigger km, EURO4 emission standards, carbon dioxide motorcycles have been introduced into the Thai emission of 120 grams per kilometre and able market. Triumph Motorcycles have for the past to run on E20 or 20% ethanol fuel. Thailand is several years invested heavily in production trying to promote the Eco-car as the next facilities in Thailand to produce and assemble product champion, in addition to the one-ton their range of motorcycles and will continue to pickup truck. do so. More recently, Ducati has also started to assemble their motorcycles in Thailand. The response to the programme has been There could be niche opportunity in the large strong. Six major automakers, mostly motorcycle segment for UK suppliers. Japanese, have received approvals for their investments that will add around 685,000 Automotive Electronics vehicles per year to the prodution capacity. Most of the automotive electronics used in cars The first eco-car rolled off the Nissan assembly produced in Thailand are imported. Given the line early last year, followed by Honda early market size and the limited number of this year. Other automakers are expected to automotive electronics producers in Thailand, follow within this year. The market opportunity the market appears to be opened to overseas for UK suppliers will be to work with the suppliers. Japanese car manufacturers, either through their HQ or local R & D operations. Auto Parts Industry There are over 2,000 automotive parts E-85 Vehicles suppliers in Thailand. Around 700 of them are UK Trade & Investment Sector briefing: Automotive opportunities in Thailand OEM?s. Many of them are international UKTI?s Tradeshow Access Programme (TAP) companies, such as Valeo, Bosch, TRW, GKN provides grant support for eligible Small & and Denso. There should be business Medium Sized Enterprises (SME's) to attend opportunities for UK suppliers of machinery, trade shows overseas. Find out more about machine tools and other materials in this UKTI support for attendance at overseas market. events If you have any, questions on the opportunities UKTI contacts above, contact the UKTI contacts named in this report. Business opportunities aimed Attakorn Saropala specifically at UK companies are added daily to Trade & Investment Manager UKTI?s website. These leads are sourced by our British Embassy Bangkok staff overseas in British Embassies, High Tel: (0066 2) 305 8237 Commissions and Consulates, across all sectors Email: Attakorn.Saropala@fco.gov.uk and in over 100 markets. www.uktradeinvest.gov.uk You can be alerted to business opportunities on Paul Reid a regular basis by registering on the UKTI Deputy Director of Trade and Investment website. Find out more on UKTI?s business British Embassy Bangkok opportunities service on the UKTI website Tel: (0066 2) 305 8294 Email: Paul.Reid@fco.gov.uk www.uktradeinvest.gov.uk Automotive Production Number of Volume in 2010 Vehicles Passenger cars 554,387 1-ton pick-up trucks 1,066,759 Commercial vehicles 24,158 Total 1,645,304 Motorcycles 2,024,599 Source: Thailand Automotive Institute Major events and activities Automotive Manufacturing 2011 - ASEAN's only machinery expo for automotive parts th manufacturing - 8 edition. (www.automanexpo.com) Contact: Reed Tradex Ltd, Bangkok Email: automan@reedtradex.co.th Time: 23-26 June 2011 th Bus & Truck 2010/AEV 2011 ? The 8 Commercial and Special Purpose Vehicle th Exposition/the 5 Alternative Energy Vehicle Exposition. [www.busandtrucks.com] Contact: TTF International Co Ltd, Bangkok Email: ttf@thaitradefairs.com Time: 3-5 November 2011 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 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: 16 June 2011, last updated 17 June 2011

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