News / Asia

Thailand Races to Supply SE Asia’s Demand for Vehicles

Thailand Racing to Supply SE Asia’s Demand for Vehiclesi
X
October 22, 2013 8:33 PM
Thailand is gaining a reputation as the “Detroit of the East” for its booming automobile industry. It is now the world's third largest maker of commercial vehicles, behind only the United States and China and ranked ninth in total vehicle production. VOA Correspondent Steve Herman reports from Rayong, Thailand, where many foreign-branded auto makers are producing vehicles for Southeast Asia’s growing middle class.
Thailand is gaining a reputation as the “Detroit of the East” for its booming automobile industry. It is now the world's third largest maker of commercial vehicles, behind only the United States and China and ranked ninth in total vehicle production. Many foreign-branded auto makers are producing vehicles in Rayong for Southeast Asia’s growing middle class.

This is one of the estimated two-and-half million vehicles rolling off Thailand's assembly lines this year.
 
Ford's regional president, Matt Bradley, praised the country as a highly successful model for manufacturing.

"Thailand, I think, has made a concerted effort from government policy in the last 15 years to plan to support the automotive industry. Ford has been in Thailand about 17 years and just since 2007 we've invested over a billion dollars in our manufacturing and product cycle plant footprint in Thailand," he said.

The automotive sector is now Thailand's third largest industry comprising 12 percent of the country's GDP and employing 400-thousand workers.

Bangkok's clogged roads attest to the success - with sales accelerated by government tax rebates to first-time buyers. 

But can these vehicles rival those made in Japan, Europe or the United States?
 
Honda executive vice president Pitak Pruittisarikorn said the Japanese automaker was making high quality vehicles here at a competitive cost.

"For Honda, cost efficiency is one of our key strategies. So we have established the good relationship with the strong and the highest quality parts suppliers, global suppliers and local suppliers," said Pitak.

  • About 2.5 million cars and trucks will be built in Thailand in 2013. (Steve L. Herman/VOA)
  • A robot helping to make a vehicle in a Honda factory in Thailand. (Steve L. Herman/VOA)
  • Future expansion of the Thailand's auto production industry could be hampered by a labor shortage. But women are already a vital element of the workforce, comprising one nearly third of workers in some factories. (Steve L. Herman/VOA)
  • Sparks fly as a robot helps to assemble a vehicle in a GM factory. (Steve L. Herman/VOA)
  • Honda is among auto manufacturers in Thailand striving to take a larger share of the domestic market from dominant Toyota, which in recent years has sold nearly one in three vehicles purchases in the country. (Steve L. Herman/VOA)
  • A worker welding inside the body of a car on a GM assembly line in Thailand. (Steve L. Herman/VOA)
  • About 400,000 workers are employed in Thailand automobile factories. These workers in the Ford canteen enjoy a free meal during their shift. (Steve L. Herman/VOA)
  • An engine completing a ten minute "hot test" after being assembled at the GM Duramax plant in Thailand. (Steve L. Herman/VOA)
  • Some automakers manufacture their own engines in Thailand. Others import them. This Ford engine is made in India. (Steve L. Herman/VOA)
  • Automakers say while they strive to make cars in Thailand which meet global standards the vehicle designs need to be modified to meet the criteria of Southeast Asian roads and driving habits. (Steve L. Herman/VOA)

Some automakers operating in Thailand import critical parts, including engines, from overseas.
 
However, GM Powertrain plant manager Jennifer Bigelow said the American automaker not only assembled its engines on site but also sourced their components in Thailand.
 
“It is definitely cost effective. We reduce shipping costs, we develop partners here that we can then work with and develop that partnership to help improve our engine and our product,” said Bigelow.

Manufacturers must also tailor their vehicles to meet regional demand, designing components such as four-cylinder diesel engines, which take advantage of the widespread availability of affordable diesel fuel.

“The product engineering teams do extensive research in each of the markets in which we operate to make sure that we are developing a product that is suitable for not only the environment but also the driving habits of the markets in which we are selling vehicles to,” said  GM executive Michael Perez.

Thailand's dominant auto production industry, led by Toyota and other Japanese manufacturers, faces obstacles, even though it exports vehicles beyond Southeast Asia (ASEAN) to Japan, the Middle East and North America. 
 
Expansion is hampered by a shortage of labor in a country with nearly full employment. That has led to opportunities for women, who comprise nearly one-third of the workforce at some Thai auto plants. 
 
And when extensive flooding in 2011 shut down manufacturing plants and parts suppliers, upstart Indonesia briefly overtook Thailand in production, ushering in a rivalry certain to continue for many years to come.

Steve Herman

A veteran journalist, Steven L Herman is the Voice of America Asia correspondent.

You May Like

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. More

Video Sudan School Becomes Target of Aerial Attacks

Dropout rate at an all-time high in South Kordofan state because many schools have been destroyed during 3-year civil war More

Tennessee Songbirds Fly Coop Long Before Tornadoes Arrive

Researchers say birds apparently alerted to danger by sounds at frequencies below range of human hearing More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid