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AUTOMOTIVE SWEDEN
NEWSLETTER
Thailand - growing in strength in the automotive industry
Over 1 million cars are produced each year in Thailand, distributed among 16 different plants. The country has 648 Tier 1 subcontractors on site and 1641 Tier 2 suppliers. This puts the country at #13 in the list of countries that produce most cars in the world.
Text: Malin Norén Image: Volvo Cars

China is in first place with 14 million cars per year, in second place is Japan with 7 million, and then comes the USA with 5.7 million. Germany is in fourth place with 5.2 million cars. In terms of safety Thailand is following the Euro 3 standard and is aiming to achieve Euro 4 in 2012 (compared to several European manufacturers that are focusing on Euro 6).

Thailand has been making efforts since 2007 to attract car manufacturers with a focus on Eco Cars. Some of the advantages of producing cars in Thailand include low import duties on hardware, that company taxation is waived during the first eight years, and that raw materials and composite parts can also be imported duty free for two years. Nissan launched its first Eco Car produced in Thailand in March 2010 called “My Car". Honda is launching its Eco Car next year.

Not so many of the Swedish automotive companies have yet chosen to locate production in Thailand. But one of the Swedish companies represented there is Autoliv. Autoliv has made Thailand the base for its operations in ASEAN (economic organization consisting of 10 countries in Southeast Asia). The reason why it chose Thailand for its base was partly because of low labor costs, good infrastructure and government incentives. There are also good international schools in the country.

For more information: www.boi.go.th

jun 18 2010
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