Thailand Automotive Industry
As of Mar 26, 2015
Automotive Industry
“Thailand: Automotive Hub of Asia”
9th largest automobile producer in the world in 2013
14 assemblers with a combined production of more than
2,000,000 in 2012
High Local content of up to 90%
Target of 3 million units in 2017
Product Categories in Thailand 2014
PPV, 115,045
Bus/Truck,
22,551
Pickup 1 ton,
371,663
Passenger
Car, 742,678
Double-Cab,
628,070
Source: The Federation of Thai Industries as of Mar 26, 2015
World’s Automotive Production 2013
(Units of production)
World’s Production: 87.24 Million (+3.6%)
Thailand : 2.45 Million (+4.3%)
#9 in Worlds’ Automotive Production
#1 in ASEAN for Automotive Production
Source: OICA as of Mars, 2014
Thailand Ranked #9
2013 Automobile Production
UNIT
World’s Production: 87 Million
THAILAND: 2.53 Million
#9 in Worlds’ Automotive Production
#1 in ASEAN for Automotive Production
2013 No. 9
2,532,577 units
Source: OICA as of March 10, 2014
ASEAN Automotive Industries
Thailand
• Production (2013): 2,457,057 units
• Sales (2013): 1,330,672 unit
• Product champion: 1-ton pick up car & Ecocar
Malaysia
• Production (2013): 601,407 units
• Sales (2013): 655,793 units
• Product champion: Passenger car
ASEAN
Population (2012):
608.8 million
GDP (2012):
US$2,338.9 billion
GDP growth rate (2012): 5.0%
Car production (2012): 4.44 million units
Car total sales (2012):
3.55 million units
Philippines
• Production (2013): 79,169 units
• Sales (2013): 181,738 units
Vietnam
• Production (2013): 93,630 units
• Sales (2013): 98,649 units
• Product champion: Motorcycle
Source: Automotive Summit 2013 & ASEAN Automotive Federation as of Mar 10, 2014
2014 Thailand’s Automotive Industry
VEHICLE
Production
(Units)
Domestic Wholesales
(Units)
Export (CBU)
(Units)
MOTORCYCLE
February
Jan.-Feb
February
Jan.-Feb.
178,351
344,751
179,384
352,530
63,945
123,666
152,037
294,966
108,173
200,613
100,443
172,874
Source: Thailand Automotive Institute as of Mar 26, 2015
Thailand’s Automotive Industry Overview
Thailand:
Target:
9th largest
To
automobile manufacture
producer in 3,000,000 units
the world in
in 2017
2013
(2014 produced
1.88 mil.units
exports 1.12
mil.units to 150
countries)
Output:
18
assemblers
with a
combined
production
of 2.8 mil.
Units in
2015
High local
content :
80-90% for
pick-up and
30-70% for
passenger car
Samples of Clusters in Thailand
Chiang Rai
High land crops
Chiang Mai
Canned & Dried Fruits
Phayao
Jewels shaping
Lumpang
Ceramics
Chiang Mai
Clothes
Chiang Mai
Tourism
CLUSTERS IN THAILAND
Pitsanulok
Agriculture Machinery
Loei:
Udon Thani
Winery
Clothes & cotton
Chiang Mai
Handicrafts
Khon Kaen
Sugar
Chiang Mai
Gems & Jewelry
Lumphoon
Electronics
Tak
Gems & Jewelry
Saraburi
Chicken, Dairy Farms
Saraburi
Cement & ceramics
Karnchanaburi
Gems & Jewelry
Ayuthaua
Software & Electronics
Ayuthaua
Auto Assembly
Western Provinces
High Value Vegetable
Nakornpathom
Pork & Poultry
Rajburi
Sugar
Rajburi
Pottery & Ceramics
Rajburi
Orchids
Petchaburi
Pineapple
Prachuab Kirikhan
Basic Iron Production
Chumporn
Fruits
Khon Kaen
Clothes & cotton
Chaiyapoom
Textile & garment
Nakornrajsima
Silk
Nakornrajsima
Basic plastic product
Pathumthani
Textlie
Bangkok
Digital Contents
Surin
Silk
Samutprakarn
Auto Parts/Accessories
Rayong:
Samutprakarn
Auto Assembly
Leather
Chanthaburi:
Tropical Fruits
Chanthaburi
Gems & Jewelry
Cholburi:
Petrochemical
Trad
Samut Sakorn
Cholburi
Koh Chang Tourism
Marine Food Products Electrical appliances
Samut Songkram
AUTOMOTIVE
Marine Food Products
Surat Thani
Samui Tourism
Phuket
Medical Services
Phuket
IT City
Phuket:
Tourism,
Surat Thani
Para wood Furniture
Krabi
Palm oil
Trang
Marine Food Products
Ubon Rajthani
Jewels shaping
Khao Yai:
Winery
FASHION
Surat Thani
Lang Suan Fruits
Ranong
Shrimp Farms
Phuket
Gems & Jewelry
Auto Clusters
Sakon Nakon
Clothes
Agri & FOODS
Surat Thani
Shrimp Farms
Surat Thani
Palm Oil
Songkhla:
Marine Food Products
Songkhla
Rubber, Para wood Furniture
ICT & SOFTWARE
TOURISM
OTHERS
Thailand Competitiveness Initiative Projects
Satoon
Marine Food Product
Pattani
Haral Food Processing
12 July 2004
Kenan Institute Asia
Capacity of Vehicle Production in Thailand
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Manufactures
Auto Alliance (Thailand)
BMW Manufacturing (Thailand)
Dongfeng Automobile
Ford Motor Company (Thailand)
General Motors (Thailand)
Hino Motors Manufacturing (Thailand)
Honda Automobile (Thailand)
Isuzu Motors Company (Thailand)
Mitsubishi Motors (Thailand)
Nissan Motor (Thailand)
SAIC Motor-CP
Scania (Thailand)
Suzuki Motor (Thailand)
Thonburi Automotive Assembly Plant
Brand
Mazda, Ford
BMW/MINI
Dongfeng
Ford
Chevrolet
Hino
Honda
Isuzu
Mitsubishi
Nissan
MG
Scania
Suzuki
Mer. Benz
Tata
Toyota
Toyota
Fuso
Volvo / UD
Toyota Motor Thailand
Toyota Autoworks
TC Manufacturing and Assembly
Thai-Swedish Assembly
Total
Note *Not include expansion project of Eco-car Phase 2
Capacity
300,000
6,000
5,300
200,000
160,000
25,150
240,000
220,000
450,000
240,000
50,000
1,000
135,000
7,000
8,000
700,000
18,000
12,000
21,700
2,799,150
Future Expansion
240,000
3,039,150*
11
Thailand’s Automotive Industry in 2015 (Jan)
2014
(Jan)
2015
(Jan)
Growth (%)
162,652
166,400
2.30
65,304
65,890
.90
- Commercial Car
2,076
2,610
25.72
- One ton pick up
95,272
97,900
2.76
Export (Unit)
81,025
92,440
14.09
Export (Bt Million)
37,411
41,151
10.00
Domestic Sales (Unit)
68,559
59,721
-12.89
- Passenger Car
29,731
27,427
-7.75
- Commercial Car
3,252
3,223
-0.89
- One ton pick up
35,576
29,071
-18.28
18,405.82
18,037.27
-2.00
Production (Unit)
- Passenger Car
OEM Export value
(Bt Million)
Source: Thailand Automotive Institute as of Mar 26, 2015
Strength of Thai Automotive Industry
Top 100 Global Suppliers Active in Thai Automotive Industry
Japanese Global Suppliers
2. Denso
4. Aisin Seiki
13. Yazaki
15. Sumitomo
16. Toyota Boshoku
18. Calsonic Kansei
19. JTEKT
20. Hitachi
28. Toyoda Gosei
33. NTN
34. NSK
35. Mitsubishi
39. NHK Spring
40. Koito
41. TS Tech
43. Takata
46. Bridgestone
49. Tokai Rika
57. Showa
61. Mitsuba
66. Asahi Glass
72. Stanley
74. Akebono
Brake
82. Sanden
84. F-Tech
92. Alpine
94. Pioneer
98. Omron
28/29 Companies
Other Global Suppliers
1. Robert Bosch
3. Continental
6. Faurecia
7. Johnson Control
8. ZF
11. TRW
12. Delphi
14. Lear
17. BASF
21. Valeo
22. Visteon
23. Autoliv
25. Mahle
27. Dana
31. BorgWarner
36. Teneco
44. Federal-Mogul
47. Michelin
50. GKN Driveline
52. Goodyear
56. Grupo Antolin
58. Bayer
59. TI Automotive
65. Draexlmaier
67. American Axle
73. Rieter Auto.
84. F-Tech
86. Hayes Lammerz
93. 3M
29/71 Companies
14
Sample of Thai Supplier
Company
Product
Thai Summit Group
Stamping & Machining & plastic parts, wire harness
Summit Group
Stamping & Machining & plastic parts
Somboon Advance Technology
Machining parts e.g. rear axle
C.C.S. Technologies
Machining parts for automotive, aerospace, E&E
S.P. Metal Parts
Auto seat frame and Stamping parts
PCS Group
Common rail part
P Quality Machine Part
Machining parts
S.K. Polymer
Plastic Parts
MIT Thailand
Wire harness
Thailand’s domestic sales and exports,
1997-2015E
Million Unit
2.5
2
1.0 1.1
Export
1.5
Domestics
1.1
1.2
0.9 0.7
1.4 1.3
Sources: The Federation of Thai Industries (FTI) as of Jan 21, 2015
2015E
2013
0.9 1.0
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0
0.5
0.2
0
0.2
0.8 0.8
0.1
0.7 0.7 0.7 0.6
0.6
0.5
0.4 0.1 0.1 0.3 0.3 0.4 0.5
0.1 0.2
1997
0.5
0.2
0.3
0.6 0.8
0.4 0.5
2014
1
Activity-based Incentives
A2: Activities in infrastructure for the country’s
development, activities using advanced
technology to create value added, with none or
very few existing
investments in Thailand
(8-year CIT exemption, exemption
of import duty on machinery/raw
materials and non-tax incentives)
A4: Activities with lower
technology than A1-A3 but
add value to domestic
resources and strengthen
supply chain
(3-year CIT exemption,
exemption of import duty on
machinery/raw materials and
non-tax incentives)
A1
A2
A3
A4
A1: Knowledge-based activities, focusing on
R&D and design to enhance the country’s
competitiveness (8-year CIT exemption without
cap, exemption of import duty on machinery/raw
materials and non-tax incentives)
A3: High technology activities which are
important to the country’s development,
with a few investments already existing in
Thailand (5-year CIT exemption,
exemption of import duty on
machinery/raw materials and
non-tax incentives)
B1
B2
B1/B2: Supporting industries that do not use high technology but are still important to value chain
(B1 : Exemption of import duty on machinery/raw materials and non-tax incentives
B2 : Exemption of import duty on raw materials and non-tax incentives)
BOI Activities for Automotive Industry
4.6
4.7
Manufacture of general automobile (B1)—Not eligible for merit-based
Manufacture of automobile engines
1.Project must have pressing of parts, not less than 4 out of 5 parts,
as follows: Cylinder Head, Cylinder Block, Crankshaft, Camshaft and
Connecting Rod (A3)
2. Assembling of engine (A4)
Source: BOI Announcement 2557 3 December 2015
Effective as of 1 January 2015
Source: A Guide to BOI Investment 2013
BOI Activities for Automotive Industry
4.8 Manufacture of vehicle parts (A2)
– 4.8.1 Manufacture of vehicle parts using high
technology including:
– 4.8.1.1 Substrate for Catalytic Converter
– 4.8.1.2 Electronic Fuel Injection System
– 4.8.1.3 Automotive Transmission
– 4.8.1.4 Electronic Control Unit (ECU)
Source: BOI Announcement 2557 3 December 2015
Effective as of 1 January 2015
BOI Activities for Automotive Industry
4.8
Manufacture of vehicle parts (A2)
– 4.8.2
Manufacture of automobile parts for safety parts
and energy-saving parts
– 4.8.2.1 ABS or Electronic Brake Force Distribution
(EBD)
– 4.8.2.2 Electronic Stability Control (ESC)
– 4.8.2.3 Regenerative Braking System
– 4.8.2.4 Idling Stop System
– 4.8.2.5 Autonomous Emergency Braking System
BOI Activities for Automotive Industry
4.8
Manufacture of vehicle parts (A2)
– 4.8.3 Manufacture of parts for Hybrid, Electric
Vehicle (EV) and Plug-in Hybrid Electric Vehicles
(PHEV) automobile
– 4.8.3.1 Battery
– 4.8.3.2 Traction Motor
– 4.8.3.3 Air-condition system
– 4.8.4 Manufacture of rubber tires for vehicles (A2)
– 4.8.5 Manufacture of other vehicle parts (B1)
Thailand’s Automotive Exports, 2002-2015 (Jan)
900
70
Vehicle and parts
783.34
754.23
709.82
800
60
700
600
516.21
50
584.01
527.06
40
500
439.11
379.49
400
30
343.17
294.25
300
20
202.05
200
100
138.16
108.08
10
59.28
0
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(Jan)
Source: The Federation of Thai Industries and Automotive Intelligence Unit as of Mar 26, 2015
Value of Motorcycle Exports
(Bt Billion)
Value of Vehicle and Parts Exports
(Bt Billion)
Motorcycles
Vehicle Parts Exports, 2002 –2015 (Jan)
Baht Billion
Baht Billion
210
300
Engine
Spare parts
180
241
Jig ,Fixture and Mould
Others
179 184
165
Total
120
250
219
OEM Parts
150
254
200
144
150
128
90
91
102
100
60
53
30
25
36
50
18
-
-
Source: Automotive Intelligence Unit, as of Mar 26, 2015
Thailand’s Automotive Production and Exports,
1994 - 2014
Million Unit
2.45
2.46
2.5
Export (CBU only)
1.65
1.23 1.19
1.5
1.39
Sources: The Federation of Thai Industries (FTI) as of Feb 6, 2015
2014
2013
0.7
2012
0.5
1.0 1.1 1.1
2011
0.9
2010
2006
2005
2004
2003
2002
2001
2000
1999
1998
1996
1997
1994
1995
0.0 0.0
0.4 0.5
0.3
0.2 0.2 0.2 0.2
0.0 0.0 0.1 0.1
0.7 0.8
2008
0.36
0.33 0.41
0.16
0.460.58
2007
0.44 0.53 0.56
1.46
1.00
0.93
0.75
0.5
-
1.29
2009
2.0
1.0
1.88
Thailand Automotive Industry Growth
units
,000,000
,500,000
Year 2014
Production
= 1,881,221 Units -23.37%
Domestic Sale = 1,128,102 Units +0.79%
Export
=
881,883 Units -33.36%
,000,000
2,453,717
1,645,304
,500,000
1,125,316
928,081
1,394,029
1,287,346
1,188,044
1,881,221
1,436,335
1,457,795
895,831
795,250
703,405
682,161 690,100776,241
999,378
1,026,671
548,871
589,126
411,721
800,357
327,233
559,428389,100
144,065
626,026
735,627
500,000 363,156
533,176
631,251
262,189
409,362
538,962
682,161
218,330
440,715
535,563
296,985
322,053
42,200
158,130
14,000
175,293180,554 239,440
152,836
66,700
130,000
0
,000,000
750,512
584,951
459,418
2,457,057
1,330,672
1,128,152
1,128,102
881,883
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Production
Sale
Export
Source: Automotive Intelligence Unit, as of Feb 6, 2015
Structure of Thai Automotive Industry
450,000 workers
Assembler
(18 car companies, 8
motorcycle companies)
100,000 workers
Tier 1
(Total 709 Companies)
Tier 2,3
(1,700 Companies)
[* LSEs : Large Scale Enterprises
Foreign
J/V
LSEs
Foreign
Pure
Thai
Majority Majority Thai
23 %
23 %
54 %
Local
Suppliers
SMEs
SMEs : Small & Medium Enterprises]
Source: Thai Autoparts Manufacturers Association, OIE and BOI as of 2014
27
BOI’s Priority Activities For Automotive Parts Industry
4.10 Manufacture of vehicle parts
ABS
Substrate for catalytic converters
Electronic fuel injection systems
Manufacture
of the
following is
classified as
priority
activity
Automobile transmission
Battery for electric-powered vehicles
8-yr CIT
Exemption
All Zones with
Cap
Import Duty
Exemption on
Machinery All
Zones
Traction motor for automobile such as hybrid or fuel cell cars
Electronic Stability Control(ESC)
Regenerative Braking System
Electric air conditioning system for automobile
Rubber tires for vehicles
Aircraft tread tires
Source: Guide to BOI 2013, Apr 1, 2014
Thai Automotive Industry - OEM Location
Source: Thailand Automotive Institute
Thai Automotive Industry
- Auto parts Location
Rayong
Body Parts: 24%,
Engine Parts; Drive, Transmission &Steering
Parts: 15% each,
Suspension & Brake Parts: 12%,
Pathumthani
Electrical Parts: 10%,
Body Parts: 18%,
Accessories: 7%,
Engine Parts; Electrical Parts: 13% each,
Mold&Die: 2%,
Suspension & Brake Parts: 10%,
Drive, Transmission&Steering Parts; Accessories: 8% each, Other: 15%
Other: 31%
Bangkok
Body Parts: 9%,
Engine Parts; Electrical Parts; Drive,
Transmission&Steering Parts; Accessories: 6% each,
Suspension & Brake Parts: 4%,
Mold&Die: 3%,
Other: 60%
Samutprakarn
Body Parts: 22%,
Electrical Parts: 15%,
Engine Parts; Drive, Transmission &Steering Parts: 8% each,
Suspension & Brake Parts: 5%,
Mold&Die: 4%, Accessories: 3%, Other: 36%
Chonburi
Body Parts: 25%,
Engine Parts: 22%,
Drive, Transmission &Steering Parts: 15%,
Electrical Parts: 9%,
Accessories: 5%,
Suspension & Brake Parts: 4%,
Mold&Die: 4%, Other: 16%
Source: Thailand Automotive Institute
Excise Tax Rate for Car
New Rate from January 1, 2016
Recent Rate
Type of car
Passenger car
- passenger car not
over than 10 seats
Engine Size
Rate
Rate
Thailand Automotive Industry Vision – Today and
Tomorrow
Vision 2011
Vision 2021
“Thailand is production base in
Asia which creates more value
added to the country with
strong automotive parts
industry
“Thailand is a global green
automotive production base
with strong domestic supply
chains which create high value
added for the country”
Source: Thailand Automotive Institute
Thailand’s Motorcycle Vehicle Production, 1996-2015 (Jan)
(Thousand)
3,500
0
Source: Thailand Automotive Institute as of Mar 26, 2015
173
1,843
2,606
2,045
2,026
1,635
1,924
1,653
1,210
1,126
846
600
500
1,081
1,000
1,438
1,500
2,080
1,962
2,000
2,378
2,500
2,359
2,867
3,000
2,219
Unit of Production
Projects under Eco-car Phase 2
Production (Unit/Year)
No.
Manufacturer
Eco Car II
(New Project)
Investment (MB)
Eco Car II
Eco Car II Eco Car II
(Expansion) (New Project) (Expansion)
1
Nissan
123,000
13,400
6,860
3,113
2
Toyota
100,000
60,000
10,406
1,900
3
Honda
100,000
TBD
5,171
TBD
4
Suzuki
100,000
-
8,439
-
5
Mitsubishi
233,000
35,000
4,900
7,714
6
Mazda
158,000
NA
9,728
NA
7
Ford
180,000
NA
18,180
NA
8
GM
158,000
NA
13,109
NA
9
SAIC Motor- CP
110,000
NA
7,610
NA
1,262,000
108,400
84,402
12,727
Total
Source BOI as of Dec 24, 2014
Activity-based Incentives
A2: Activities in infrastructure for the
country’s development, activities using
advanced technology to create value added,
with none or very few existing
investments in Thailand
(8-year CIT exemption, exemption
of import duty on machinery/raw
materials and non-tax incentives)
A4: Activities with lower
technology than A1-A3 but
add value to domestic
resources and strengthen
supply chain
(3-year CIT exemption,
exemption of import duty
on machinery/raw
materials and non-tax
incentives)
A1
A2
A3
A4
A1: Knowledge-based activities, focusing on
R&D and design to enhance the country’s
competitiveness (8-year CIT exemption without
cap, exemption of import duty on
machinery/raw materials and non-tax
incentives)
A3: High technology activities which are
important to the country’s development,
with a few investments already existing
in Thailand (5-year CIT exemption,
exemption of import duty on
machinery/raw materials and
non-tax incentives)
B1
B2
B1/B2: Supporting industries that do not use high technology but are still important to value chain
(B1 : Exemption of import duty on machinery/raw materials and non-tax incentives
B2 : Exemption of import duty on raw materials and non-tax incentives)
BOI Promotes Automotive Industry
4.6 Manufacture of general automobile (B1)
4.7 Manufacture of automobile engines (A3)
4.8 Manufacture of vehicle parts
4.8.1 Manufacture of vehicle parts using high technology (A2)
4.8.2 Manufacture of vehicle parts for safety parts and energysaving parts (A2)
4.8.3 Manufacture of vehicle parts for hybrid, electric vehicle
and plug-in hybrid vehicles (A2)
4.8.4 Manufacture of rubber tires for vehicles (A2)
4.8.5 Manufacture of other vehicle parts (B1)
4.12 Manufacture of motorcycles (except less than 248 cc engine
displacement) (A3-B1 depends on conditions)
Source: BOI Announcement 2557 3 December 2015
Effective as of 1 January 2015
ASEAN Opportunity for Automotive
Industry
“Great Leap of Next Decade” for ASEAN
Automotive Industry
Relatively low penetration of vehicles
Market expansion due to Rise of Income
Growth and Rise of Middle Class
Growth Factors
of ASEAN
Market
Push to produce small cars by Low Cost
Eco Car Policy (Eco Car and Low Cost
Green Car Policy)
More market competition due to
liberalization under FTAs
Market: 5 million cars by 2020-larger than
Japanese market in 2012.
Production: Surpass 6 million cars through
export growth by 2020.
Source: Automotive Summit ( TAPMA) as of June 20, 2013
Thailand: A Production Hub of ASEAN
AUTOMOTIVE PRODUCTION BASE OF ASIA
International Car Policy
Production Base of Product Champion
(1 Ton pickup, Eco car, High quality motorcycle)
Competitive Auto Parts
1st Strategy
2nd Strategy
3rd Strategy
Clear Direction and
Opportunity Creation
Standardization and
R&D
Human Resource
Development
Source: Automotive Summit ( TAPMA) as of June 20, 2013
Thailand as Production Hub for All Regions, 2012
Thailand exports car to the world
Asia (32%)
Middle East (24%)
Oceania (21%)
EU (7%)
Africa (4%)
Source: Automotive Summit ( TAPMA) as of June 20, 2013
By 2018, ASEAN will be the 6th Largest Automotive Market Globally
SALE 2011
SALE 2015F
SALE 2018F
1
17,708,634
29,010,852
33,391,276
2
11,562,701
16,466,283
16,970,585
3
3,524,789
5,788,462
9,039,806
4
3,475,760
5,364,935
6,287,188
5
3,173,634
4,591,476
4,717,218
6
2,904,338
3,850,511
4,692,961
7
2,593,769
3,499,860
4,025,975
8
2,409,826
3,429,031
3,968,411
9
2,204,229
2,704,451
2,897,909
10
1,941,253
2,563,360
2,793,822
Global Rank
Source: Frost & Sullivan & ASEAN Automotive Federation
Car Production, 2013
Growth
+5%
Total ASEAN 2012: 4.24 million units
2013: 4.44 million units
+0%
+13%
+6%
+5%
Source: ASEAN Automotive Federation as of Mar 10, 2014
+27%
43
Car Production Share, 2013
Source: ASEAN Automotive Federation as of Mar 10, 2014
44
Strong Network in ASEAN and ASEAN+6
Parts Sourcing for ASEAN+ Dialogue Partner
Source: ASEAN Automotive Federation(Automotive Summit 2013) as of June 24, 2013
ASEAN is Moving Towards a Green Economy
Hub of Global
Green Automotive
Production
THAILAND
Low Cost Green
Car Program
INDONESIA
Hub of Energy
Efficient Vehicle
(EEV)
Tax incentives to
manufacturers
and importer of
EV& Hybrid cars
MALAYSIA
PHILIPPINES
Source: ASEAN Automotive Federation(Automotive Summit 2013) as of June 24, 2013
POLICY&
SUPPORTING
BODY
-Government
-Associations/
Institutes
-Universities/
Technical
Colleges
Vehicle parts
(386 companies)
Vehicle
&motorcycle
parts
(201 companies)
Engines,
Drivetrains,
Steering,
Suspensions, Brake
Wheels, Tires,
Bodyworks,
Interiors,
Electronics and
Electric systems.
ASSEMBLER
SME (Local
suppliers)
(1,700
companies)
Stamping,
plastics, rubber,
machining,
casting, forging,
function,
electrical,
trimming
TIER 1
SERVICE
INDUSTRY
-Distribution
(W/H)
-Finance
-Testing
-Consulting
-Logistics
-Banking/
Leasing
SUPPORTING INDUSTRY
(Machinery, Equipment & Devices, Mold& Die, Jig & Fixture)
TIER 2 & 3
Strong Cluster &
Supply Chain
Structure
Passenger &
Pick-up
(17 companies,
23 factories)
Motorcycle
(8 companies,
8 factories)
Vehicles
Assemblers
(100,000
workers)
Dealer, Service
center
(200,000
workers)
Parts manufacturers (450,000 workers)
Supporting industries (100,000 workers)
UPSTREAM INDUSTRY (Steel, Plastics, Rubber, Electronics,
Glass, Textiles, Leather, Chemicals, Oil, Coating, and Galvanized
Metal)
Thailand: A Hub of Automotive Industry for ASEAN & the World
Hub of Pick-up
Hub of Eco-Car
Hub of automobiles & parts regional R&D Center
• Toyota Motor Asia Pacific Engineering & Manufacturing
• Denso International Asia (R&D)
• Isuzu R&D
• Nissan Technical Center South East Asia
Source: ASEAN Automotive Federation(Automotive Summit 2013) as of June 24, 2013
Thailand’s Human Resource
Development in Automotive Industry
Thailand’s Current Human
Resource Status
By Skills
Manufacturing 50%
Mechanics 26%
Engineering 7%
Electrical 5%
Electronics 7%
Acct/Admin. 5%
Others 1%
By Job Level
Staff 74%
Technical 7%
Supervisor 7%
Expert 5%
Engineer 4%
Executive 3%
Source: Auto Summit 2013 (TAI/ Role of HR Development in Automotive Industry) as of
June 28, 2013
By Education Level
Secondary-High School 50%
Vocational Certificate 15%
Diploma 25%
Degree 10%
Total Number of Graduates in Automotive Field
Education levels
Skill level
(Vocational)
Technical level
(High vocational)
Operational level
(University/
Bachelor)
Total
Total number of graduates
2013
2014
2015
2016
34,142
34,408
34,408
34,408
17,882
20,269
20,269
20,269
-
-
67
67
52,024
54,677
54,746
54,746
Source: Auto Summit 2013 (Information Technology & Vocational Manpower Center) as of June 18, 2013
Thailand’s Human Resource Development in
Automotive Industry ( as of June 18, 2013)
Total Number of Students Studying in the Automotive Field
Vocational School
(Skill Level)
77,596
University/Bachelor
(Operations Level)
27,095
High Vocational School
(Technical Level)
Source: Information Technology & Vocational Manpower Center as of June 18, 2013
67
104,758
Total students in
automotive industry
Projected Demand for Workers in the
Automotive Industry
Year
Production
units
(million )
Workers in
automotive
industry
Productivity in
manufacturing
(vehicle/person/year)
2010
1.6
457,000
3.5
Eco car, Nissan,
Ford Fiesta
2011
1.7
472,200
3.6
Eco car: Honda
Note
2012
1.9
513,500
3.7
Ford (for exports)
Eco car:
Mitsubishi, Suzuki
GM (Exports)
2013
2.1
552,600
3.8
Eco car: TOYOTA
2014
2.2
564,100
3.9
Exports > 1.3
million units
2015
2.3
575,000
4.0
AEC
2020
>2.5
>600,000
4.5
Goal: Top 5 exports
Source: Auto Summit 2013 (Thai Auto Parts Industry Association) as of June 18, 2013
AHRDIP under Joint Collaboration JTEPA
(Japan-Thailand Economic Partnership Agreement)
MOI/ OIE/ DIP/
DTN/ DEAA
Thai
Gov’t
FTI/TAPMA/TGI/
TPA/TDIA/ISIT
Source: Thai Automotive Institute as of July 1, 2013
Japan
Gov’t METI /JETRO/
JICA/ JCC
AHRDIP
(2012-2016)
Japan
private
sector
HIDA
1. R&D (VA/VE)
2. Testing (Material Evaluation)
Thai 3. Manufacturing (Production preparation)
private4. Manufacturing (Mold & Die)
sector TOYOTA: New Toyota Production System
AHRDIP under Joint Collaboration JTEPA
(Japan-Thailand Economic Partnership Agreement)
• To develop high
standard training system
and curricula
• To develop Thai trainers
• To enhance
effectiveness of skill
training
• To establish a HRD
center to support the HR
development in
manufacturing, testing
and R&D
•
•
•
•
• Skill certification
system for
automotive industry
AHRDP
(20122016)
20062011
20032005
GOALS
AHRDP results:
132 examiners,
318 trainers,
7,151 trainees
Source: Thai Automotive Institute as of July 1, 2013
• Manufacturing:
1,000 trainers and
255,000 personnel.
• Testing: 200
trainers and 30,000
personnel.
• R&D: 100 trainers
and 15,000
personnel.
TAI’s Role of HR Development in the Automotive Industry
(AHRDP)
THAI
LAND
JAPAN
Ministry of
Industry
JETRO
(METI)
The Federation
of Thai
Industries
Japan
Chamber of
Commerce
SUPPORTED BY
JAPANESE COMPANIES
• TOYOTA
Production
System
• Skill
Certification
• Mind
Management
• Skill
Manufacturing
TOYOTA
NISSAN
DENSO
Source: Thai Automotive Institute as of July 1, 2013
• Mold & Die
HONDA
HR Development System of JCC AHRD Committee
Experts from Japan
Master trainers (Thai)
2012: From car maker of JCCAHRD committee
2013: From Tier 1 maker of JCC AHRD
committee
Trainers (Thai)
From Thai auto parts makers
Projected number of trainers of AHRDIP by
2016
R&D:
130 persons
Testing:
270 persons
New TPS:
240 persons
Mold & Die:
20 persons
Production Preparation:
130 persons
Trainees (Thai)
From Thai auto parts makers
Source: Thai Auto Parts Industry Seminar, as of Mar 13,2013
Asian Minimum Wages
Country
Minimum wage (US$)
Increase (%)
Bangladesh
$37 per month for garment workers
+0
Cambodia
$75 per month for garment workers
+23
China
$184-257 per month
+13
Indonesia
$84-226 per month
+18
Malaysia
$300 per month
+50
Myanmar
$2 per day in Yangon
+0
Philippines
$5-10.5 per day
+7
Thailand
$10.3 per day nationwide
+65
Vietnam
$79-135 per month
+17
Laos
$82 per month
+78
Source: Government labor department / DPA as of July 2, 2013
Strengths of Thai Local Auto Parts Supplier
Robust government policies for the automotive industry over 50
years.
Comprehensive supplies by local auto parts makers.
Strong supporting industries with network of upstream SMEs (i.e.
Dies, Plastics and etc.)
Thai auto parts with international quality standard (i.e. ISO9000,
ISO14000, etc.)
Large production base and big investment projects of car makers
(i.e. Japanese, etc.) in Thailand.
NO national car brands, therefore ready to supply parts to all brands.
Source: Automotive Summit ( TAPMA) as of June 20, 2013
Economic
benefits from
the FTAs and
AEC
Opportunity 5
Multinational
auto
manufacturers
currently
basing their
production in
Thailand.
Opportunity 4
Rapid growth
of automotive
industry; high
demand for
REM from the
car sales
increasing
trend.
Opportunity 3
Geographical
advantage as a
production
base in this
region
especially for
CLMV
countries.
Opportunity 2
Opportunity 1
Opportunities of Thai Local Auto Parts
Supplier
Source: Automotive Summit ( TAPMA) as of June 20, 2013
Thai
automotive
industry
strongly being
supported by
the
government
ASEAN Opportunity for Automotive
Industry
Automotive Production Network in ASEAN & ASEAN+6
Lack of R&D
• Establishment of R&D and auto parts testing center.
•
•
•
•
Toyota Motor Asia Pacific Engineering & Manufacturing
Denso International Asia (R&D)
Isuzu R&D
Nissan Technical Center South East Asia
Educational system cannot meet demand
of manufacturer
• Thai Auto Parts Manufacturers (TAPMA) join hands to introduce SchoolFactory system, and Factory-School system.
• Ministry of Education & Ministry of Labor.
Automotive industry policy/
Registration/ Standard
• TAPMA would be the focal point.
Source: Automotive Summit ( TAPMA) as of June 20, 2013
Automotive Production Network in ASEAN & ASEAN+6
Shortage of labor
• To employ non-immigrant labor.
• To be allowed to hire foreign labor for an extended period.
Low productivity
• SME auto part makers subsidized with OJT & Productivity.
• Automation/Robot utilization.
• Productivity fund.
Labor skill
•
•
•
•
Labor skill standard.
Vocational qualification standard.
Skill certification system.
Institute of vocational qualification.
Source: Automotive Summit ( TAPMA) as of June 20, 2013
Existing Automotive Hubs in Thailand
Production Hub
R & D Hub
Regional Head Office
Toyota
Toyota Motor Thailand
(for Asia, Oceania, Africa , EU,
Central & South America Market)
Toyota Motor Asia
Pacific Engineering
& Manufacturing
(for Asia Pacific)
Toyota Motor Asia
Pacific Engineering &
Manufacturing
(for Asia Pacific)
Honda
Honda Automobile (Thailand)
(for Asia, Oceania,
Africa, EU, Central & South
America Market)
Honda R&D Asia
Pacific
(for Asia Pacific)
Asian Honda Motor
(for Asia (except China
and Japan) and Oceania)
Nissan
Nissan Motor (Thailand)
(for Asia, Oceania,
Africa, EU, Central & South
America Market)
Nissan Technical
Center Southeast
Asia
(for ASEAN)
Nissan Motor (Thailand)
(for ASEAN)
Isuzu
Isuzu Motor (Thailand), Tri Retch
Isuzu Sales &
Isuzu Operation (Thailand)
(for Asia, Oceania, Africa, EU,
Central & South America Market)
ISUZU Technical
Center of Asia
(for Southeast Asia)
-
Mitsubishi
Mitsubishi Motor (Thailand)
(for Asia, Oceania, EU, Central &
South America Market)
-
-
65
Thailand Automotive Production Capacity
Present Capacity
(as of 2012)
Projected
Expansion
Total Capacity in
2015
Toyota
690,000
70,000
760,000
Ford & Mazda
295,000
Mitsubishi
460,000
Isuzu
430,000
Honda
300,000
180,000
480,000
Nissan
220,000
150,000
370,000
GM
160,000
Suzuki
55,000
BMW
10,000
10,000
Mercedes-Benzes
7,200
7,200
Tata
10,000
5,000
15,000
Total
2,637,200
555,000
3,192,200
295,000
50,000
510,000
430,000
160,000
100,000
Source: Thailand Automotive Industry Directory 2013 and newspaper reports as of October 25, 2013
155,000