| In the news: Executives at Toyota Motor's new | | | | all their eggs in one basket. Thai plants are part of |
| plant in a Bangkok suburb point out that the | | | | their diversification strategy." |
| factory in Thailand is the first to run on clean | | | | Thailand was able to produce 1.2 million vehicles |
| natural gas. | | | | last year and almost half of which were exported. |
| The factory is equipped with robots and parts | | | | Thailand's vehicle tax structure that favors |
| movers moving silently on the assembly floors. | | | | pickups over passenger cars makes the |
| Toyota's $426 million facility shows that despite | | | | one-tonne truck the champion of the Thai auto |
| the political unrest in Thailand it has not affected | | | | industry. Inexpensive diesel has also helped to |
| global carmakers' positive views of the country. | | | | increase sales. Auto columnist Suphat Tisapong |
| Thailand is renowned worldwide when it comes to | | | | said, "Entry prices for pick-ups and passenger |
| the production of one-ton trucks, with projected | | | | sedans are about the same here at around half a |
| outputs of 853,000 units for this year alone. The | | | | million baht ($14,285). But a pick-up comes with a |
| said figure outpaced United States which | | | | much larger 2.5-litre engine compared with 1.5 litre |
| according to J.D. Power Automotive Forecasting | | | | for sedans." |
| produces only 588,000 units of trucks. | | | | Aside from Toyota, Ford Motor Co, General |
| Thailand is the second biggest market for trucks | | | | Motors Corp, Nissan Motor Co Ltd, Mitsubishi |
| since it's a common sight in rural areas where | | | | Motors Corp, Isuzu Motors Ltd, and Mazda Motor |
| most farm products are produced. The domestic | | | | Corp. have also opened factories in Thailand for |
| sales for this year are forecast at 510,000 units | | | | their export vehicles and mostly have started |
| as compared to the 651,000 units forecast in the | | | | building their plants after Asia's 1997/98 economic |
| United States. | | | | crisis. Each of them has invested 140,000-180,000 |
| According to Vallop Tiasiri, director of the | | | | trucks a year, exporting them to 100 countries |
| privately-funded Thailand Automotive Institute, | | | | from Australia and the Middle East to Europe and |
| "The strength of our truck industry lies in the size | | | | even reaching Latin America. |
| of our domestic market that makes production | | | | Automotive Resources Asia analyst May |
| cost competitive. Our traditional political and labor | | | | Arthapan said since most producers have already |
| stability also help." | | | | establish their plants in Thailand there would come |
| The Toyota plant has started operation last | | | | a time that the export growth will slow down |
| month and occupies 245 hectares or 605 acres | | | | once output meets global demand . She also |
| of paddy fields, making Thailand as a major | | | | added, "The big export rise in recent years is a |
| export base for small pickup trucks. Plant Manager | | | | result of the relocation of production base to |
| Charnchai Suppayakom said, "We ship 4,000 | | | | Thailand. Once this is over, we should return to |
| right-hand drive Hilux trucks to Australia a month | | | | more normal growth." |
| and another 2,000 of the left-hand version to | | | | J.D. Power has estimated that global demand for |
| Saudi Arabia." He also added that the factory's | | | | the small trucks for this year reaches only 2.1 |
| initial 100,000 annual production capacity can be | | | | million units and predicted average annual growth |
| quadrupled to answer any increase in future | | | | of 7.1 percent for the coming 2008 to 2011. As |
| export demand. | | | | oppose to J.D. Power the Vallop of Thailand |
| ToMoCo's third Thai facility has been able to | | | | Automotive was not that optimistic saying, "This |
| increase annual vehicle production output to | | | | is quite a small vehicle segment with limited |
| 550,000 of which 40 percent are shipped or | | | | growth potential of perhaps 2 per cent a year." |
| exported overseas. The Thai facility will also be | | | | He also added that Thailand would need to shift to |
| used to manufacture Toyota truck parts. The | | | | other trucks or small sedans once demand for |
| additional 2,000 workers at the Ban Pho plant | | | | new one-ton trucks ceases. |
| bring Toyota's Thai workforce to 13,500 of which | | | | In recent years the Thai government has offered |
| 5,000 are permanent staff while the rest are | | | | proposals that include generous incentives for |
| hired on temporary contracts. | | | | global carmakers just to encourage them to |
| Despite the military coup last September in | | | | invest in export-oriented facilities for small |
| Thailand that has somewhat affected its image as | | | | economy sedans. The Thai government aims to |
| an investment destination for global companies | | | | further develop its auto industry which is its |
| both the Japanese and US carmakers are | | | | second-biggest industry after computers and |
| determined in staying put. Somphob Manarangsan, | | | | electronics, employing about 350,000 people and |
| an economics professor at Bangkok's | | | | accounting for nearly 15 percent of gross |
| Chulalongkorn University said, "Japanese firms are | | | | domestic product. |
| investing more in China, but they don't risk putting | | | | |