Market profile
Cheaper and simpler cars are naturally preferred, as is the
case for most markets at the same developmental stage as Thailand. Remarkable
is the popularity of pickup trucks, holding a share of over half the market.
This makes Thailand the world's second biggest market for such vehicles, after
the United States. Their popularity has been explained as a result of
government tax policies as well as a need for multi-purpose vehicles. Indeed, many manufacturers (Ford, Isuzu,
Mazda, Mitsubishi) have chosen to localize their global bases for pickup
manufacturing in Thailand, often exporting to Europe, Japan, and much of the
rest of the world. These one-ton trucks are not exported to North America,
where larger trucks are preferred. In 2005, Thailand surpassed the United
States and became the world's largest manufacturer of one-ton pickups, and by
2007 were second in the world (again behind the US) in both production and export
of pickup trucks overall.
While many Western brands are present, as well as certain
others, Japanese brands have long had a dominant position in Thailand. In 1978
and 1982, for instance, Japanese brands received 91 and 90 percent shares. In
2006, they still had a 88.5 percent share, in spite of the late entries of
Ford, General Motors, Volkswagen, and BMW.
Light and medium trucks, as well as microvans, also provide
the basis for the ubiquitous Songthaew (Share taxis) which provide much of the
local transport requirements in Thailand. Modes of transport in Thailand
consist of a multitude of different solutions ranging from elephants to
airplanes, but passenger cars have been steadily increasing in popularity.
Daihatsu
Daihatsu in Thailand were built by Bangchan Motors, a
company which has also assembled Opels and Hondas. Originally only small trucks
Hijets) were manufactured, but by 1980 the Charade was also available. Some
market specific models of the Mira, most notably a pickup version, were
developed, but Daihatsu withdrew from Thailand subsequent to the 1997 financial
crisis. Sales had dropped from 4,000 in 1995 to a mere 160 in 1997, and in
March 1998 Daihatsu stopped selling cars in Thailand.
Ford
Thai Motor Co. (founded in 1947 to import Fords) began
assembling British Ford cars in 1961, in a joint venture with Anglo-Thai Motor.
The firm was renamed Ford Thailand in 1973, although Ford withdrew in 1976.
Various crises and tougher restrictions on assemblers had made the business
climate inhospitable. Ford maintained a presence in the eighties and nineties
through assembly by Sukosol and Mazda Motor. In 1995 Ford and Mazda opened
AutoAlliance Thailand (AAT), a joint venture which began producing Mazda
B-Series-based pickup trucks in May 1998. Sold as the Ford Ranger an SUV
version of it, called the Ford Everest, was developed locally. It was first
shown at the March 2003 Bangkok Motor Show.
General Motors
Having had an early presence in Thailand since the creation
of Bangchan Motors in 1970, General Motors withdrew in the late seventies as
the Vietnam War, Thai domestic stability, and the energy crisis all threatened
their ability to do business. After having left in 1977, General Motors
Thailand (GMT) returned in 2000, subsequent to the elimination of local content
requirements.[4] They have since offered a combination of Opels, Daewoos, and
Holdens with Chevrolet badging.
General Motors placed the production of the Chevrolet Zafira
(Opel) to Thailand, originally with the intention of supplying the local ASEAN
markets only. After the 1997 Asian financial crisis and resulting market
collapse this aim had to be adjusted, and by 2002 90% of the production of
General Motors' Rayong plant was being exported, as far away as Europe and
Chile. The Zafira also marked a notable first for the Thai car industry, when
it became the first finished car to be exported to Japan (as the Subaru
Traviq). The Zafira was built in Thailand from May 2000 until 2005. Various
Daewoos and Isuzu pickup trucks are also provided with Chevrolet badging, as is
the Holden Commodore ("Chevrolet Lumina"). GMT also assembled the Alfa Romeo 156 in
2002-2004, a result of Fiat and GM's strategic alliance.
Honda
Honda only began assembling cars in Thailand in 1984, by a company called Banghan General. Banghan continued to do so under license until 2000, even though Honda established their own parallell production by Honda Cars Manufacturing Thailand in 1992. This company, with 91.4% Honda ownership, then changed its name to Honda Automobile (Thailand) in 2000. The most famous model of Honda Thailand is the 1996 City, a small sedan developed especially for the ASEAN markets and not intended for sale in Japan. Nonetheless, the second generation City (2002) has been exported to Japan as the Honda Fit Aria since its introduction.
Isuzu
Isuzus have been built in Thailand since 1963 by the Isuzu Assembling Plant. The company became "Isuzu Motors Co. (Thailand)" in 1966, and built their first pickup trucks in 1974. The Thai-only Isuzu Vega SUV was built from 1998 until 2002. The larger and more rounded MU-7 SUV can seat six or seven and appeared in November 2004.
Mazda
The first Mazdas assembled in Thailand were three-wheeled commercial
vehicles, in 1950. In 1974 "Sukosol and Mazda Motor Industry" was
founded, opening Mazda's first knock-down assembly plant in 1975. In 1998 the
AutoAlliance Thailand (AAT, formed in 1995) automobile assembly plant was
opened, a joint venture between Ford Motor Company and Mazda Motor Corporation
in Rayong province, Thailand. AAT builds compact pickup trucks and SUVs
primarily for the South-East Asian market, with exports to other developing
markets and Europe as well. The Mazda 323 Protégé was produced between January
2000 and 2002, but was replaced with imports from the Philippines as a result
of market liberalizations.
Mercedes-Benz
Mercedes-Benz first took a toehold in Thailand in 1960, when
they established a plant for the manufacture of utility vehicles (operational
in 1961). Passenger car production commenced in 1979, soon after the
governments ban on CBU imports. Mercedeses are built by the Thonburi Automotive
Assembly Plant Company. In more recent years, much of the Mercedes-Benz lineup
has been built here, from the A-class to the C, E, and S-classes.
Mitsubishi
Mitsubishi Motors has a long-standing presence in Thailand.
Mitsubishi Motors (Thailand) (MMTh) is headquartered in Pathumthani, just north
of Bangkok. Their flagship product is the Mitsubishi Triton (L200 in many
markets) pickup truck, which is built exclusively in Laem Chabang and is
exported to more than 140 global markets. Mitsubishi had originally made Thailand their
global hub for pickup production in 1995, after having become Thailand's first
vehicle exporter in 1988. This focus on global exports was of considerable aid
to MMTh the tight years after the Asian financial crisis, when the local
markets collapsed.
Nissan
Nissan was the first Japanese producer to build a plant in
Thailand, in a 1962 joint venture with Siam Motors. "Siam Motors &
Nissan Co., Ltd." received a sister company called "Siam Nissan
Automobile Co., Ltd." in 1977, which only built pickup trucks. Today,
Nissan manufactures various cars and the D21/Navarra pickup truck in Thailand,
also for export to various markets. A branch called "Prince Motor
Thailand" also operated, until February 1986. In addition to Nissan
products, Siam Automotive also assembled Fiats for the local market until 1986.
One local specialty is the Nissan NV, a tiny pickup truck
based on the Y10 Nissan AD Van. This was
also later developed into a double cab, four-seater model. In April 2009, the
company's name was changed to Nissan Motor (Thailand).
Tata
Thonburi Automotive Assembly Plant Company, who builds
Mercedes-Benz vehicles in Thailand, has a 30% stake in a joint venture
producing Indian Tata Motors automobiles since 2007.
Thai Rung
The only Thai automobile manufacturer is Thai Rung, also
known as TR, manufactured by Thai Rung Union Car Public Co. Ltd. (TRU). The
company was established in 1967 in Bangkok, Thailand. The original name was
Thai Rung Engineering Co. Ltd., which was changed to Thai Rung Union Car Co.
Ltd. in 1973. TRU was first listed on the Stock Exchange of Thailand in 1994.
TRU's business ranges from product design and development, automotive parts
manufacturing, industrial equipment manufacturing, car assembly lines, to
financial business.
Some discontinued TR vans were powered by Land Rover engine
in combination with Thai-developed body design and platform. Modern TR cars are
based on small or medium trucks, developed into SUV or seven-seat multi-purpose
vehicles by Thai Rung themselves. The 2009 models were the TR Adventure (based
on the Isuzu D-Max) and TR Allroader (based on the Thai-version Chevrolet
Colorado).
Toyota
Toyota Motor Thailand Co. (TMT) was set up in 1962 and began
producing the Toyota Publica and Tiara cars, and the Stout, Dyna, and DA trucks
in 1964.[48] In 1979 Toyota began making pressed body parts in Thailand, and in
1989 they began manufacturing engines locally. In 1996, as a response to stiff
competition from imported South Korean cars, Toyota introduced the Tercel-based
Toyota Soluna in Thailand. The Soluna has also been exported to other ASEAN
countries. After the 1997 Asian Financial Crisis, the ASEAN markets contracted
severely and TMT were forced to change their focus to a more export oriented
one. Nevertheless, they remain mostly an import-substitution operation and
their main export market beyond Southeast Asia is Oceania.[45] In 2005, Toyota
established a research and development center in Thailand. Toyota currently
builds a wide range of cars in Thailand, from the Yaris to the Fortuner SUV.
Volvo
Volvo has a long-standing Thai presence through the
(entirely owned by Volvo) Thai Swedish Assembly Co, Ltd., which was formed in
1976. Their large, more expensive cars occupy a prestige position in the
market. Following the 1991 easing of import tariffs, cars of over 2,300 cc
received an import duty of 100% while those with smaller engines were only
taxed at 60%. Volvo, dependent on an engine of 2,316 cc, found themselves
disadvantaged against Mercedes-Benz and after some lobbying managed to have
this limit raised to 2,400 cc. In addition to various Volvo cars (and the XC90
SUV), Thai Swedish Assembly also built the Land Rover Freelander from 2001
until 2005.
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