thailand in global automobile networks - International Trade Centre

Contents
i
THAILAND IN GLOBAL AUTOMOBILE NETWORKS
Acknowledgement ...................................................................................................................................................................... ii
Preface ...................................................................................................................................................................................... iii
1. Introduction .................................................................................................................................................................... 1
2. Policies .......................................................................................................................................................................... 2
2.1. Import-substitution era ....................................................................................................................................... 2
2.2. From import-substitution to global integration .................................................................................................... 4
3. Outcome ........................................................................................................................................................................ 5
3.1. Growth and Composition of Production .............................................................................................................. 7
3.2. Export trends and patterns ................................................................................................................................. 7
3.3. Automotive Industry in the National Economy .................................................................................................... 8
3.4. Thailand in Regional Automobile Production Networks ...................................................................................... 9
3.5. The link between Assembler and Parts Suppliers ............................................................................................ 10
4. What explains Thai success? ....................................................................................................................................... 11
4.1. Structural shifts in the global auto industry ....................................................................................................... 11
4.2. Favourable Policy Environment ........................................................................................................................ 12
4.3. Domestic market .............................................................................................................................................. 14
5. Malaysian automotive industry ..................................................................................................................................... 14
5.1. Beginnings ....................................................................................................................................................... 14
5.2. The ‘national car’ policy .................................................................................................................................... 15
5.3. Outcomes ......................................................................................................................................................... 18
5.4. Trade liberalisation and the future of the national car project ........................................................................... 20
6. Summary and references ............................................................................................................................................. 22
References .............................................................................................................................................................................. 24
Table 1: Chronology of Trade and Investment Policies Impacting on Thai Automotive Industry 1960 -20081 ......................... 26
Table 2: Tariff and Taxes (on Completely Built-up (CBU) and Completely Knocked-down (CKD) Vehicles, 1985-2008
(%) ........................................................................................................................................................................................... 28
Table 3: Production Capacity (Units) of Thai Car Assemblers, 1989-2006 .............................................................................. 29
Table 4: Production Capacity of Carmakers Classifies by Type of Vehicles, 2006 .................................................................. 29
Table 5: World Motor Automobile Production1: Top 20 Producing Countries, 2000, and 2008................................................ 30
Table 6: Automobile Exports and Imports Classified by Vehicle Type, 1999-2007 .................................................................. 31
Table 7: Direction of Automobile Exports from Thailand, 1999-2007 (%) ................................................................................. 32
Table 8: Automobile (CBU) Production1 in Thailand Classified by Car Makers ....................................................................... 33
Table 9: Indicators of ease of doing business ranking of sleeted Asian countries, 2009 .......................................................... 34
Table 10: Domestic Automobile sale in Indonesia, Malaysia, the Philippines, and Thailand, 1980–2005 (‘000 units) ............. 35
Table 11: Domestic Vehicle Sales in Thailand Classified by Vehicle Type, 1990-2008 (‘000 units) ......................................... 36
Table 12: Domestic Car Sales and the Market Share of National Carmakers, 1985-2009 ....................................................... 36
Table 13: Domestic Automobile Production and sales in Malaysia, 1980-2009 (‘000 units) .................................................... 37
Figure 1: Evolution of Denso Affiliate in Thailand, 1972-present .............................................................................................. 37
Figure 2: Volume of Vehicle Production and Share of Vehicle Exports, 1961-2008 ................................................................. 38
Figure 3: Percentage of Commercial Vehicles in Total Locally Assembled Vehicles, 1961–2009 (Jan-Nov) ........................... 38
Figure 4: Automobile exports from Thailand, 1990-2008 ......................................................................................................... 39
Figure 6: Value of Imported Parts and Components per Locally Assembled Vehicle (US$, at 1988 price), 1988-2007. .......... 40
Figure 7: Pattern of Regional Division of Labour in the Automotive Industry: .......................................................................... 41
Evidence of Southeast Asian Economies ................................................................................................................................ 41
Figure 8 A Relationship Structure in the Thai Automotive Industry .......................................................................................... 41
Figure 9: Automobile Production 1 in Malaysia and Thailand, 1999-2008 (‘000 units) .............................................................. 42
Figure 10: Automobile exports from Malaysia and Thailand, 1990-2008 ................................................................................. 42
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Business and Trade Policy Team - International Trade Centre (ITC) E-mail: jouve@intracen.org
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