Automotive Industry in Thailandin Thailand

ThailandThailand: Automotive Hub of ASEAN: Automotive Hub of ASEAN

2005 production ~ 1.125 million units2005 production ~ 1.125 million units(World’s 14(World’s 14thth largest) largest)

Export ~ 440,000 units Export ~ 440,000 units Largest in Southeast Asia Largest in Southeast Asia Capacity of 2.0 million units in 2010 Capacity of 2.0 million units in 2010 World’s largest production of one-ton World’s largest production of one-ton

pickup trucks pickup trucks

820,000 units in 2005820,000 units in 2005

2010 Target—World’s Top 10 2010 Target—World’s Top 10

• Auto assembly for local and export markets Auto assembly for local and export markets under AFTA and other FTAunder AFTA and other FTA arrangements arrangements

• Auto part manufacturing to serve domestic and Auto part manufacturing to serve domestic and export markets export markets

• Potential small car hub -- low fuel consumptionPotential small car hub -- low fuel consumption

• NGV target: 120,000 NGVs by 200NGV target: 120,000 NGVs by 2008 8

Investment Opportunities in Automotive Investment Opportunities in Automotive IndustriesIndustries

Detroit of Asia: StrengthsDetroit of Asia: StrengthsDetroit of Asia: StrengthsDetroit of Asia: Strengths Thailand is the Thailand is the biggestbiggest automobile producer among automobile producer among

ASEAN nationsASEAN nations..

Thailand is the Thailand is the world’s largestworld’s largest producer and market producer and market for one-ton pick up trucks after the U.S.for one-ton pick up trucks after the U.S.

Thailand is currently the export base of Mitsubishi, Thailand is currently the export base of Mitsubishi, Ford, Mazda, Toyota, Isuzu and GMFord, Mazda, Toyota, Isuzu and GM

Exports of CKD parts and components have Exports of CKD parts and components have increasedincreased

Strengths: Strengths: Automotive Hub of ASEANAutomotive Hub of ASEANStrengths: Strengths: Automotive Hub of ASEANAutomotive Hub of ASEAN

14 assemblers from Japan, US and Europe14 assemblers from Japan, US and Europe

Over 700 first-tier suppliersOver 700 first-tier suppliers

1,100 second and third-tier suppliers1,100 second and third-tier suppliers

2005 motorcycle production 2005 motorcycle production 3 million 3 million unitsunits

Production volumes of the Thai Automotive IndustryProduction volumes of the Thai Automotive IndustryProduction volumes of the Thai Automotive IndustryProduction volumes of the Thai Automotive Industry   Type of VehicleType of Vehicle 19961996 19971997 19981998 19991999 20002000 20012001 20022002 20032003 20042004 20052005 Growth Growth

05/0405/04

PPaasssseennggeerr

Passenger CarsPassenger Cars 138,579138,579 112,041112,041 32,00832,008 72,71672,716 97,12997,129 156,056156,056 169,321169,321 251,684251,684 304,349304,349 277,603277,603 -8.79-8.79

Off-road Passenger Off-road Passenger Vehicles (OPV)Vehicles (OPV)

2,5442,544 1,6041,604 1,9501,950 5,8225,822 5,9605,960 4,6214,621 20,59920,599 8,9658,965         

Pickup Passenger Vehicles Pickup Passenger Vehicles (PPV)(PPV)

-3-3 -3-3 -3-3 -3-3

299,435299,435  

291,747291,747  

384,672384,672  

5,8035,803 42,78942,789 62,00262,002 44.944.9

CCoommmmeerrcciiaall

Pickup TrucksPickup Trucks11 369,913369,913 223,243223,243 121,963121,963 244,223244,223 465,060465,060 557,622557,622 762,025762,025 36.6836.68

Vans, Micro-BusesVans, Micro-Buses 1,0951,095 373373 6060 00 00 00 00 165165 00 00 --

BusesBuses 609609 554554 577577 8181 00 271271 388388 9090 213213 412412 93.4393.43

Medium & Heavy TrucksMedium & Heavy Trucks22 46,68846,688 22,48822,488 1,5721,572 4,3914,391 9,1979,197 6,7136,713 10,01110,011 18,74518,745 23,20823,208 23,27423,274 0.280.28

   Total Total (excluding Motorcycles)(excluding Motorcycles)

559,428559,428 360,303360,303 158,130158,130 327,233327,233 411,721411,721 459,418459,418 584,951584,951 750,512750,512 928,081928,081 1,125,3161,125,316 21.2521.25

   MotorcyclesMotorcycles44 1,437,7941,437,794 1,081,0441,081,044 600,497600,497 846,426846,426 1,125,7231,125,723 1,209,9951,209,995 1,977,1441,977,144 2,424,6762,424,676 3,028,0703,028,070 3,494,0123,494,012 15.3915.39

   TotalTotal 1,997,2221,997,222 1,441,3471,441,347 758,627758,627 1,173,6591,173,659 1,537,4441,537,444 1,669,4131,669,413 2,562,0952,562,095 3,175,1883,175,188 3,956,1513,956,151 4,619,3284,619,328 16.7616.76

Source: The Federation of Thai IndustryRemark: 1 = Pickup < 1 ton, Pickup 1 ton and Double Cab 2 = < 5 tons, 5-10 tons, 10 tons up 3 = PPV began in 2000 4 = CBU + CKD

Unit: Cars

Sales Volumes of the Thai Automotive IndustrySales Volumes of the Thai Automotive Industry Sales Volumes of the Thai Automotive IndustrySales Volumes of the Thai Automotive Industry

   Type of VehicleType of Vehicle 19961996 19971997 19981998 19991999 20002000 20012001 20022002 20032003 20042004 20052005 Growth Growth 05/0405/04

PPaasssseennggeerr

Passenger CarsPassenger Cars 172,730172,730 132,060132,060 46,30046,300 66,85866,858 83,10683,106 104,502104,502 126,353126,353 179,005179,005 221,077221,077 193,612193,612 -12.42-12.42

Off-road Passenger Vehicles Off-road Passenger Vehicles (OPV)(OPV)

00 00 4,2754,275 7,1997,199 7,6497,649 6,3706,370 21,62021,620 16,49216,492         

Pickup Passenger Vehicles Pickup Passenger Vehicles (PPV)(PPV)

-3-3 -3-3 -3-3 -3-3155,483155,483

  171,325171,325

  241,266241,266

  310,592310,592

  

10,43310,433 43,02243,022 312.36312.36

CCoommmmeerrcciiaall

Pickup TrucksPickup Trucks11 327,663327,663 188,324188,324 84,10484,104 132,922132,922 359,358359,358 427,215427,215 18.8818.88

Commercial CarsCommercial Cars                                 

Vans, Micro-BusesVans, Micro-Buses 12,63312,633 8,3538,353 2,7922,792 4,1674,167 6,4926,492 6,5826,582 8,3358,335 8,4898,489 9,5859,585 12,89112,891 34.4934.49

BusesBuses 00 00 00 00 00 00 00 00 262262 364364 38.9338.93

Medium & Heavy TrucksMedium & Heavy Trucks22 76,10076,100 34,41934,419 6,5946,594 7,1847,184 9,4599,459 9,0539,053 10,12410,124 18,59818,598 25,30625,306 26,30126,301 3.923.92

   Total Total (excluding Motorcycles)(excluding Motorcycles)

589,126589,126 363,156363,156 144,065144,065 218,330218,330 262,189262,189 297,832297,832 407,698407,698 533,176533,176 626,024626,024 703,405703,405 12.3612.36

   MotorcyclesMotorcycles44 1,236,9401,236,940 907,584907,584 526,735526,735 604,010604,010 788,854788,854 900,925900,925 1,332,7441,332,744 1,766,8601,766,860 2,039,3942,039,394 2,112,4292,112,429 3.583.58

   TotalTotal 1,826,0661,826,066 1,270,7401,270,740 670,800670,800 822,340822,340 1,051,0431,051,043 1,198,7571,198,757 1,740,4421,740,442 2,300,0362,300,036 2,665,4182,665,418 2,815,8342,815,834 5.645.64

Source: The Federation of Thai IndustryRemark: 1 = Pickup < 1 ton, Pickup 1 ton and Double Cab 2 = < 5 tons, 5-10 tons, 10 tons up 3 = PPV began in 2000 4 = CBU + CKD

Unit: Cars

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1998 1999 2000 2001 2002 2003 2004 2005 2004 2005 2006

Commercial Vehicles Passenger Cars

Domestic WholesalesDomestic Wholesales

Annual Jan-Oct

Source: Thailand Automotive Institute

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1998 1999 2000 2001 2002 2003 2004 2005 2004 2005 2006

Commercial Vehicles Passenger Cars

ProductionProduction

Annual Jan-Oct

Source: Thailand Automotive Institute

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1998 1999 2000 2001 2002 2003 2004 2005 2004 2005 2006

CBU Engine Spare Parts

JIG & DIE OEM Parts Others

ExportsExports

Annual Jan-Oct

Source: Thailand Automotive Institute

Parts Manufactured in ThailandParts Manufactured in Thailand EnginesEngines

Diesels, MotorcyclesDiesels, Motorcycles Engine ComponentsEngine Components

Starters, Alternators, Starters, Alternators, Pumps, Filters, Hoses, Pumps, Filters, Hoses, Gears, FlywheelsGears, Flywheels

Body PartsBody PartsChassis, Bumpers, Fenders, Chassis, Bumpers, Fenders, Hoods, Door PanelsHoods, Door Panels

Brake SystemsBrake SystemsMaster Cylinders, Drums, Master Cylinders, Drums, Discs, Pads, Linings, Discs, Pads, Linings,

Steering SystemsSteering SystemsSteering Wheels, Gears, Steering Wheels, Gears, Columns, Pumps, LinkagesColumns, Pumps, Linkages

SuspensionsSuspensionsShocks, Coils, Ball JointsShocks, Coils, Ball Joints

TransmissionsTransmissionsGears, Casings, Rear Axles, Gears, Casings, Rear Axles, Drive Shafts, Propellor Drive Shafts, Propellor ShaftsShafts

Electrical/ElectronicsElectrical/ElectronicsAlternators, Starters, Alternators, Starters, Speedometers, Lamps, Speedometers, Lamps, Motors, Flasher RelaysMotors, Flasher Relays

Interiors/ExteriorsInteriors/ExteriorsSeats, Mats, Weather Seats, Mats, Weather Strips, Console BoxesStrips, Console Boxes

OthersOthersWindshields, Seat Belts, Windshields, Seat Belts, Radiators, Wheels, Radiators, Wheels, CompressorsCompressors

Opportunities:Opportunities:Sophisticated electronic systems Sophisticated electronic systems including mould and die including mould and die technologytechnology

Design, R&D and testingDesign, R&D and testing

Precision engineeringPrecision engineering

Note: BOI gives component parts Note: BOI gives component parts manufacturers up to 8 years corporate manufacturers up to 8 years corporate income tax holiday & exemptions of income tax holiday & exemptions of machinery import duty for investmentsmachinery import duty for investments

Parts Not Sufficiently Parts Not Sufficiently Produced in ThailandProduced in Thailand

Passenger Car EnginesPassenger Car Engines Fuel Injection PumpsFuel Injection Pumps** TransmissionsTransmissions** Differential GearsDifferential Gears Injection NozzlesInjection Nozzles** Electronic SystemsElectronic Systems Electronic Control UnitsElectronic Control Units Turbo ChargersTurbo Chargers** Substrates for Catalytic Substrates for Catalytic

convertersconverters Anti-Lock Brake SystemsAnti-Lock Brake Systems Jigs and fixturesJigs and fixtures