Thailand is the leading automotive producer in Southeast Asia. The Thai automotive industry started in 1960. Within six decades, the country has transformed from an assembler of automotive components into one of the world’s top automotive manufacturing and export hubs.
An in-depth analysis from Thailand automotive consulting experts can help you navigate Thailand’s automotive market.
Thailand Automotive Consulting Market Overview
The automotive industry in Thailand has a vibrant foreign OEM competition as well as an extensive network of supporting industries. Virtually all of the leading automakers, assemblers, and component manufacturers in the world have an established presence in the country.
Most manufacturers and part suppliers are located in Bangkok, Ayutthaya, Chonburi, Chachoengsao, Pathun Thani, Rayong, and Samutprakarn. These strategic locations enable them to gain easy access to leading markets in not only Southeast Asia but also China and India.
As Thailand continues to expand its manufacturing base, automotive part suppliers are increasing their presence in the country. They set up their research and development departments so they are better equipped to serve their customers.
Thailand’s automotive market is dominated by Japanese automakers that have established the country as their production base of one-ton pickup trucks and eco cars for exports. European and American automakers are gaining ground in Thailand as manufacturers of large, luxury cars.
The automaker with the largest market share by OEM is Toyota with 27.4%. Isuzu accounts for 19% of the market share, Honda 15%, Mitsubishi 8%, and Nissan 7%. The remaining 24% is from other automakers.
Market Opportunities
What makes Thailand’s automotive market quite attractive for foreign investors is the government’s supportive policies. The Thai government encourages foreign investment in the automotive industry by offering both tax and non-tax incentives.
Some of the benefits offered to foreign investors are
- Permit to own land
- Permit to bring experts and skilled workers to work in investment-promoted activities
- Permit to take out money in foreign currency
- Import duty exemption on raw materials
- Import duty exemption on machinery
- CIT exemption for up to eight years
Automakers and investors in Thailand can also benefit from the country’s free trade agreements. The FTAs between Thailand and other countries provide investors with exciting opportunities to gain competitive advantages and expand their supply chain, among many other things.
Some FTAs also benefit investors indirectly by speeding trade flows and harmonized product standards and custom codes.
Thailand is well-equipped for future automotive developments and presents exciting opportunities for stakeholders. Our Thailand automotive consulting experts can provide you with high-impact strategies and solutions that will help you enter and navigate Thailand’s automotive market.
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