Advertisement
The automotive industry stands as a linchpin in Thailand’s robust economy, contributing significantly to its prosperity. The nation, endowed with stable economic foundations and abundant resources, is poised for continual growth in the automotive sector. Facilitated by government policies, Thailand has evolved into a noteworthy foreign original equipment manufacturer (OEM), particularly in the automotive realm. In 2021, Thailand emerged as a frontrunner in Southeast Asia, boasting a substantial 18 percent growth rate in vehicle production.
The inception of vehicle manufacturing in Thailand traces back to the 1960s when the government initiated the import of automobiles to fuel economic expansion. The emphasis, initially on vehicle parts, especially bodies and suspensions, laid the groundwork for burgeoning demand. As of 2022, Thailand’s automobile production capacity surged to an impressive 1.88 million units. Notably, passenger cars took center stage, with over 751 thousand units manufactured in 2022.
Driving International Trade
Thailand’s economic tapestry is intricately woven with diverse industries, with the automotive sector standing as the second-largest export contributor after computer parts. Automotive trading forms a substantial portion of Thailand’s international trade, echoing its significance in the global market. The origins of Thailand’s manufacturing prowess can be traced back to the “Anglo-Thai Motor Company,” a collaborative venture between Ford of Britain and the Thai Motor Industry Co. This collaboration introduced the import of vehicle parts and local assembly for the domestic market. The year 2021 witnessed the imports of automobiles and parts reaching an impressive value of approximately 310 billion Thai baht, signifying substantial growth. Moreover, vehicle parts and accessories emerged as the primary components driving Thailand’s automotive product export value.
Several international players orchestrate the harmonious growth of Thailand’s automotive industry, with Japanese automotive companies playing a pivotal role. Despite facing a catastrophic flood in 2011, various Japanese companies expressed unwavering confidence in Thailand’s economic resilience. Japanese car brands, particularly Toyota, have become the preferred choice for Thai consumers. Toyota, holding around one-third of the domestic market share, stands as a testament to this preference. In the initial months of 2022, Toyota’s cars dominated the market, emerging as the highest-selling vehicles in the country.
Prime Minister Srettha Thavisin announced a strategic partnership between Thailand and Toyota Motor Corp to propel the country’s electric vehicle (EV) industry forward. Toyota, recognizing Thailand’s potential, especially in pick-up trucks and eco-cars, plans to trial its first EV pick-up truck in the country. This move aligns with Thailand’s ambitious goal to convert a third of its annual production of 2.5 million vehicles into EVs by 2030.
In conclusion, Thailand’s automotive journey is not merely a story of production numbers; it is a narrative of resilience, innovation, and strategic partnerships that continue to steer the nation towards a dynamic and sustainable automotive future.