Automakers Heading to Thailand

Two Japanese automakers namely Honda and Nissan,more than 60 percent were pick-up trucks that is
Japan's second and third largest carmakersaccording to Thailand Automotive Institute. Likewise,
respectively were reported to be seeking for a licensethe values of the vehicle exports which are mostly
to set up plants in Thailand. These two automakers willheaded to Australia, the Middle East, and Europe have
use the plants in Thailand to build their fuel-efficientalso increase by 19 percent.
cars in support of Thailand's aim to become anIn order to be granted a license, auto companies must
eco-car production center.build vehicles with engines of no more than 1.3 liters
Thailand is scheduled to release license on February ofthat are able to run more than 20 kilometers on a liter
next year to an unspecified number of carmakersof petrol. Aside from that, the plant should at least build
according to Satit Chanjanakul, Secretary-General of100,000 vehicles annually by the fifth year of operation.
the Board of Investment. He also added that theHonda spokeswoman Yasuko Matsuura in Tokyo said,
Thailand government will offer tax breaks and lower"We're considering various options, but nothing has
tariffs on machinery imports to the companies.been decided."
At present there is an increasing demand for vehiclesThailand is not the only Asian country that is hoping to
that are fuel efficient and utilizes the hybrid technologybecome a vehicle production center as a matter of
attributed to the ever increasing gasoline prices as wellfact India's government last year has cut taxes on
as the increasing awareness to preserve thehatchbacks in its desire to become a global base for
environment.small cars.
Two of the world's largest automakers namelyThere are already Japanese automakers that have
Toyota and General Motors producer of quality Saabstarted building factories in India for exporting small
900 parts have their manufacturing plants in Thailandcars namely Suzuki Motor Corp, Nissan, and Hyundai
already. They use these manufacturing plants for theMotor Co.
production of pickup trucks. Toyota and GeneralAccording to John Bonnel, a director at the Bangkok
Motors are planning of expanding their car productionunit of J.D. Power & Associates the Thai government's
to add to lat year's 241 billion baht worth of vehicleplan of making the country a center for pick-up trucks
exports.is not going to be easy. But he also said that the
Mr, Satit said, "The government wants fuel-efficientcountry has a substantial demand for pickup trucks
cars to be the country's future main export productand its much easier converting the country to an
after our successes in promoting shipments of pick-upexport-oriented hub. Mr. Bonnel explained during a
trucks."phone interview that the car project is "starting from
Last year Thailand's auto exports has increase by 22scratch in terms of the market demand in Thailand.
percent from a year earlier to 539,206 units whereinThe demand is not there and has to be created.