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