Current Market Situation of

Automotive Sector in Thailand

Mr. Vichai Jirathiyut

President

Thailand Automotive Institute

14 November 2016

2016 ASEAN Iron and Steel Sustainability Forum 1

2

Outline

1. Overview of Thailand Automotive Industry

2. Trend of Thailand Automotive Industry

3. Technology and Innovation Learning Center

for Electric Vehicle Industry Development

4. New Thailand Automotive and Tyre Testing Center

1. Overview of Thailand Automotive Industry

3

Production 2015 (x1,000,000 units)

1. China 24.50 6. India 4.13 11. France 1.97

2. USA 12.10 7. Mexico 3.57 12. Thailand 1.92

3. Japan 9.28 8. Spain 2.73 13. UK 1.68

4. Germany 6.03 9. Brazil 2.43 14. Russia 1.38

5. South Korea 4.56 10. Canada 2.28 15. Turkey 1.36

2

7

9

10 4

14

11

13

3

1

6 12

5

Data source: OICA ; Analyzed by TAI

World motor vehicle production ranking 2015

4

15

8

5 Source: Automotive Industry Club, The Federation of Thai Industries ; Analyze by Thailand Automotive Institute

Overview of Thailand Motor Vehicle Production

6

Overview of Thailand Motorcycle Production

Export Markets of Thailand

7

Motor vehicle production (units)

8

167,165 179,158 178,217

123,968 135,045 151,698 165,863 159,149 171,496 165,381 163,170 152,692

147,651 166,412 192,811

138,237 168,394 179,875

153,950 156,337

0

100,000

200,000

300,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015 2016

3% -5%

89% 1%

-20%

0%

20%

40%

60%

80%

100%

0

500,000

1,000,000

Passenger car Pick up PPV Bus & Truck

YTD 2015 YTD 2016 Jan - Aug 2016 1,303,667

Jan - Aug 2015 1,260,263

%∆ YoY -2 %

%∆ MoM -3 %

%∆ Accumulate Growth 3 %

2 mill units

Source: AIC made by TAI

Motor vehicle domestic sales (units)

9

59,721 63,945 74,117

54,058 56,942 60,322 60,863 61,991 61,869 67,910 76,426 101,464

51,821 57,093 72,646

54,986 66,035 66,049 60,635 63,619

0

50,000

100,000

150,000

200,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015 2016

Jan - Aug 2016 492,884

Jan - Aug 2015 491,959

%∆ YoY 3 %

%∆ MoM 5 %

%∆ Accumulate Growth 0.2 %

-7% 0%

66% 5% -20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

0

100,000

200,000

300,000

Passenger car Pick up PPV Bus & Truck

YTD 2015 YTD 2016

0.78 mill units

Source: AIC made by TAI

Motor vehicle (CBU) export (units)

10

92,440 108,173

127,619

82,130 88,937 76,774 102,359 101,982

124,952 111,229

101,650 86,650

93,714 104,712

109,334

80,491 99,547 107,025 99,155 94,183

0

50,000

100,000

150,000

200,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015 2016

Jan - Aug 2016 788,161

Jan - Aug 2015 780,414

%∆ YoY -8 %

%∆ MoM -5 %

%∆ Accumulate Growth 1 %

-6% -2%

88%

-20%

0%

20%

40%

60%

80%

100%

0

100,000

200,000

300,000

400,000

Pick up Passenger Car PPV

YTD 2015 YTD 2016

1.22 mill units

Source: AIC made by TAI

Motor vehicle (CBU) export (units)

11

0

50,000

100,000

150,000

200,000

250,000

Asia

201

5

Asia

201

6

OC

N 20

15

OC

N 20

16

MID

201

5

MID

201

6

AFR

201

5

AFR

201

6

EU 2

015

EU 2

016

N.A

m 2

015

N.A

m 2

016

CS.

Am 2

015

CS.

Am 2

016

Pickup PPV Passenger

9% 12%

-15%

-33%

-1%

42%

-22%

Source: AIC made by TAI

Motorcycle production (units)

12

173,868 180,458 185,800

134,271 151,416 150,389

125,941 130,219 149,234 145,279 135,714 144,736

159,434 150,603 151,313 122,101

146,767 168,245

142,516 169,055

0

100,000

200,000

300,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015 2016

Jan - Aug 2016 1,210,034

Jan - Aug 2015 1,232,362

%∆ YoY 30 %

%∆ MoM 19 %

%∆ Accumulate Growth -2 %

-6%

15%

-10%

-5%

0%

5%

10%

15%

20%

0200,000400,000600,000800,000

1,000,0001,200,000

Commuter

(Family,Scooter)

Sport

(<150, 150-399, ≥400 cc.)

YTD 2015 YTD 2016

1.8 mill units

Source: AIC made by TAI

Motorcycle domestic sales (units)

13

142,931 152,037 183,977

106,315 144,941

172,522

113,477 125,621 134,434

118,516 121,599 122,720

160,585 131,748 161,993

105,582

165,644 184,457

127,331

155,996

0

100,000

200,000

300,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015 2016

Jan - Aug 2016 1,193,336

Jan - Aug 2015 1,141,821

%∆ YoY 24 %

%∆ MoM 23 %

%∆ Accumulate Growth 5 %

5%

2%

0%

1%

2%

3%

4%

5%

6%

0

500,000

1,000,000

1,500,000

Commuter

(Family,Scooter)

Sport

(<150, 150-399, ≥400 cc.)

YTD 2015 YTD 2016

1.60 mill units

Source: AIC made by TAI

Motorcycle (CBU & CKD) export

14

72,675

101,346 92,228

77,126 83,780 76,112 65,960 64,962 65,835 63,462

83,791 92,703

72,055

85,893 88,525

65,639 74,354 72,320

63,775 69,744

0

50,000

100,000

150,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015 2016

Jan - Aug 2016 592,305

Jan - Aug 2015 634,189

%∆ YoY 7 %

%∆ MoM 9 %

%∆ Accumulate Growth -7 %

-21%

3%

-25%

-20%

-15%

-10%

-5%

0%

5%

0

200,000

400,000

600,000

CBU CKD

YTD 2015 YTD 2016

0.9 mill units

Source: AIC made by TAI

Trade value

15

(unit: million USD) Jan - Aug 2015 Jan - Aug 2016 %∆

Export 23,265 24,105 4

- Motor vehicle 11,170 12,071 8

- Motorcycle 862 782 -9

- Auto parts 11,233 11,252 0.2

Import 10,273 11,067 8

- Motor vehicle 903 1,038 15

- Motorcycle 134 115 -14

- Auto parts 9,235 9,915 7

Trade Balance 12,993 13,038 0.3

Source: INFORMATION AND COMMUNICATION TECHNOLOGY CENTER WITH COOPERATION OF THE CUSTOMS DEPARTMENT

made by TAI

16

Passenger Car, 46.02%

Commercial Vehicle, (Not included 1 Ton Pickup Truck), 6.13%

1 Ton Pickup Truck, 47.82%

Other, 0.02%

Thailand Vehicle’s Market share of 2015

Source: Analyzed by Automotive Intelligence Unit (AIU), TAI, 2015

Thailand Automotive Market Share

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Thailand Automotive Industry Overview and Forecast

Thailand motor vehicle production, sales and export

Source: AIC, Analyzed by Automotive Intelligence Unit-TAI Note: Including passenger car, pick up 1 ton, van, bus, truck .

International Car Production Base in Thailand

18

19

Light weight vehicle Capacity 2.7 mill. unit/year

Isuzu Motors Company (Thailand) Co., Ltd. Location : Samutprakarn, Chachoengsao Capacity : 200,000 units per year

Honda Automobile (Thailand) Co., LTD. Location : Ayuthaya Capacity : 240,00 units per year

Suzuki Motor (Thailand) Co., LTD. Location : Rayong Capacity : 135,000 units per year

Nissan Motor (Thailand) Co., Ltd. Location : Samutprakarn Capacity : 240,000 units per year

Toyota Autoworks Co., Ltd. Location : Samutprakarn, Capacity : 18,000 units per year

Mitsubishi Motors (Thailand) Co., Ltd. Location : Chonburi Capacity : 450,000 units per year

Toyota Motor Thailand Co., Ltd. Location : Samutprakarn, Chachoengsao Capacity : 700,000 units per year

Auto Alliance (Thailand) Co., Ltd. Location : Rayong Capacity : 300,000 units per year

Dongfeng Automobile Co., Ltd. Location : Chachoengsao Capacity : 5,300 units per year

Ford Motor Company (Thailand) Co., Ltd. Location : Rayong Capacity : 200,000 units per year

General Motors (Thailand) Co., Ltd. Location : Rayong Capacity : 160,000 units per year Thonburi Automotive Assembly Plant Co., Ltd.

Location : Samutprakarn Capacity : 8,000 units per year

BMW Manufacturing (Thailand) Co., Ltd. Location : Rayong Capacity : 10,000 units per year

SAIC Motor-CP Co., Ltd. Location : Rayong Capacity : 50,000 units per year

Data source: TAI (2014)

Thailand Automotive Industry Overview

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Hino Motors Sales (Thailand) Co., Ltd. Location : Samutprakarn, Chonburi Capacity : 25,150 units per year

Heavy duty vehicle Capacity 86,850 unit/year

TC Manufacturing and Assembly (Thailand) Co., Ltd. Location : Bangkok Capacity : 12,000 units per year

Scania (Thailand) Co., Ltd. Location : Chachoengsao Capacity : 1,000 units per year

Thai-Swedish Assembly Co., Ltd. Location : Samutprakarn Capacity : 21,700 units per year

Thonburi Automotive Assembly Plant Co., Ltd. Location : Samutprakarn Capacity : 7,000 units per year

Isuzu Motors Company (Thailand) Co., Ltd. Location : Chachoengsao Capacity : 20,000 units per year

Data source: TAI (2014)

Thailand Automotive Industry Overview

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THAI YAMAHA MOTOR CO.,LTD. Location : Samutprakarn Capacity : 450,000 units per year

KAWASAKI MOTORS ENTERPRISE (THAILAND) CO.,LTD Location : Rayong Capacity : 150,000 units per year

THAI HONDA MANUFACTURING CO.,LTD. Location : Bangkok Capacity : 1,700,000 units per year

THAI SUZUKI MOTOR CO.,LTD Location : Pathumtani Capacity : 600,000 units per year

TRIUMPH MOTORCYCLES (THAILAND) LTD. Location : Chonburi Capacity : 54,000 units per year

DUCATI MOTOR (THAILAND) CO.,LTD. Location : Rayong Capacity : 5,000 units per year

BMW MANUFACTURING (THAILAND) COMPANY LIMITED Location : Rayong Capacity : 5,000 units per year

Motorcycle Assembler Capacity

2.96 mill. unit/year

Data source: TAI (2014)

Thailand Automotive Industry Overview

2. Trend of Thailand Automotive Industry

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23

New Engine of Growth: 10 Targeted Industries

Source: http://www.boi.go.th

24

Super Cluster

Source: http://www.boi.go.th

Automotive and Parts Cluster

25

Electricity generating capacity /

Grid readiness preparation

Studying and Demonstration Projects on EV in Thailand

Electricity

Consumption

Small EV for city use

Zero-emission EV-Bus

Source: Durongkaveroj, P. (Minister of Science & Technology) Strategy to promote Thailand as an ASEAN EV hub. Presented at Army Club (12 June 2015).

Trend of Thailand Automotive Industry

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EV Production Promoted Policy in Thailand (as of 8st August 2016)

Measurement Government Goal

1. Investment Policy as the concept “Clean, Ecological, Safety” 1.1 Government Procurement for E-Bus

BOI/Fiscal Policy/MOI

Under TOR consideration

3 Years

By November 2016

2. HRD and Technology Development 2.1 AHRDA (Samutprakarn) 2.2 Manufacturing Automatic and Robotic Institute

Labor Ministry, Ministry of Education, TAI, FTI TGI/FTI TAI/MOI/Fiscal Policy

5 Years

3 Years

2.3 New Testing Center for Tire and Auto Parts

TISI TAI

3 Years

3. Infra Structure 3.1 Auto City

TISI/ TAI / FTI/ Education Ministry/ IEAT

3 Years

3.2 Logistics Ministry of Transportation 3 years

27

Super Cluster and EV Production Promoted Policy in Thailand (as of 8st August 2016)

Measurement Government Goal

4. Regulations 4.1 Standards Regulation Upgrading (United Nation Regulation)

TISI 1 Year

4.2 Financial Support Ministry of Finance 3 years

4.3 Import Duty Exemption for Car Prototype imported for R&D

Ministry of Finance Under the laws procedure for announcement

28

3. Technology and Innovation Learning Center

for Electric Vehicle Industry Development

as of 13 October 2016

Objectives:

1. To disseminate the knowledge and research findings on electric vehicles to

general public, electric vehicles companies and government agencies

2. To strengthen the electric vehicle industry in Thailand by supporting

research and development of Thai companies

29

Main Activities:

30

Developments of Thai auto part makers

EV test drive

I. Developments of Thai auto part makers

31

Train the trainers program

R&D of EV part prototype for

Industrial production

Study of EV technology

Study of EV charger

technology

Database of electric vehicle part manufacturers

PR and

Seminar

EV car maker

EV technology

exhibition

center

EV car maker

EV part maker

15 ก.ม.

TAI kluaynamtai

TAI Bangpoo

KX Building, KMUTT

12 ก.ม. 40 ก.ม.

II. EV Test drive and demonstration

32

KMUTT

Examples of EV in Market

33

Hyundai IONIQ BMW i3 Nissan LEAF

BYD e6 Mitsubishi i-Miev MG Roewe E50

Toyota Prius Volvo XC90 Mercedes-Benz S Class

Smart ForTwo

Charging station

34

Quick charge 50 kW

Normal charge 7.4 kW (IEC

CCS)

Normal charge 9.6 kW

(CHAdeMO)

35

Area of charging station at Bangpoo office

36

Area of EV technology exhibition center

37

Idea of EV parts display

38

Area of charging station at Kluaynamtai office

Project timeline

39

Activities Duration

Jul-Sep 2016 Oct-Dec 2016 Jan-Mar 2017 Apr-Jun 2017 Jul-Sep 2017

1. Establish collaboration

2. Establish the learning center

3. Organize workshops

4. R&D of part prototype

5. Electric vehicle test run

6. Gather knowledge related to

electric vehicle technology

40

4. New Thailand Automotive and Tyre Testing Center

41

1. Laboratory testing for TIS. and ASEAN MRA standard

2. Proving ground for vehicles regulatory and development testing.

Noise & Wet Grip

Brake Performance

Park Brake (Hill)

Dynamic Platform

Handling

Skid-Pad

Noise Vibration and Harshness Surface

High Speed Circuit

Main Infrastructures

New Thailand’s Vehicle Testing Center

42

TAI and abroad automotive Institute in field and laboratory tests

43

• Short Term: To develop the automotive industry by focusing on maintain the production by supporting

the activities of product standard development to enhance utilization of local parts and materials.

• Medium Term: Focus on driving activities related to research and develop in order to be accepted by

international market.

• Long-term: Support and facilitating development activities for upstream research which focuses on

product development and design.

The role of New Thailand Automotive and Tyre Testing Center

Phases of developments & supports for automotive industry

44

and more…

- Fuel Station

- Electric Charging Station

- Garages

- Workshop

- Parking Lots

Communities and essential Infrastructures for enabling environment for automotive development

ภาพจาก: SGM/PATAC Guang De Proving Ground: Test Tracks & Area

Dormitory Cafeteria

Admin Office Building

MIRA Technology park

45

Proving Ground

Testing Laboratory

Promote and support auto parts development and design

Dynamic Pad

46

Overview of the progress of the project

Topographic & Geological Survey

Preparation for master plan of the project

Operational plan for tyre testing based on UN R117

Design layout and detailed drawing for the test tracks and required infrastructures

Determining testing machine & equipment specifications

Procurement process

Technical staffs training

Seminar & public relations activities to promote new vehicle testing center

Main Project Activities

Thank you

www.thaiauto.or.th