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, Steve Herman is VOA's Southeast Asia Bureau Chief and Correspondent, based in Bangkok.

You May Like

Somalia: No Popular Elections in 2016

In interview Wednesday with VOA, President Mohamud says 'one person, one vote' elections will not be possible due to continuing insecurity More

Scientists Predict Climate Change Will Increase Child Malnutrition

Public health expert in Germany says that by 2050, 25 million more children's lives will be put at risk because of lack of nutrients tied to climate change More

Erdogan in China Amid Tensions on Uighurs, Missile System

Turkey's president has criticized China's heavy-handed policies toward Uighurs in violence-plagued Xinjiang region, where China says it is fighting foreign-backed separatists More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Russia Accused of Abusing Interpol to Pursue Opponentsi
X
Henry Ridgwell
July 28, 2015 9:53 PM
A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video Special Olympics Athletes Meet International Friends

The Special Olympics are underway in Los Angeles, California, with athletes from 165 countries participating in an event that gives people with intellectual disabilities the chance to take part in an international competition. VOA's Mike O'Sullivan reports that for athletes and their families, it's also an opportunity to make new friends in an international setting.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Iran Nuclear Pact Wins Few New US Congressional Backers

Later this week, President Barack Obama returns from a trip to Africa to confront a U.S. Congress roiled by the nuclear accord with Iran, an agreement that has received the blessing of the U.N. Security Council. Days of intensive lobbying and testimony by top administration officials have won few new congressional supporters of the pact. VOA’s Michael Bowman reports.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.
Video

Video Racially Diverse Spider-Man Takes Center Stage

Whether it’s in a comic book or on the big screen, fans have always known the man behind the Spider-Man mask as Peter Parker. But that is changing, at least in the comic book world. Marvel Comics announced that a character called Miles Morales will replace Peter Parker as Spider-Man in a new comic book series. He is half Latino, half African American, and he is quite popular among comic book fans. Correspondent Elizabeth Lee reports from Los Angeles.
Video

Video Critics of Japan Defense Policy Focus on Okinawa

In Okinawa, many locals have long complained that Tokyo places an unfair burden on the tiny island by locating most of Japan's U.S. military bases there. As Japan's government moves toward strengthening and expanding the country's defense policies, opponents of those plans are joining local protesters in Okinawa, voicing concern about where the country is headed. VOA’s Brian Padden reports from Okinawa.
Video

Video IS Uses Chemical Weapons in Syrian Attack

Islamic State militants have added a new weapon in their arsenal of fear: chemical weapons. VOA Kurdish service reporter Zana Omer was on the scene within hours of a recent attack in Hasakah, Syria, and has details of the subsequent investigation, in this report narrated by Miguel Amaya.
Video

Video Historic Symbol Is Theme of Vibrant New Show

A new exhibit in Washington is paying tribute to the American flag with a wide and eclectic selection of artwork that uses the historic symbol as its central theme. VOA’s Julie Taboh was at the DC Chamber of Commerce for the show’s opening.

VOA Blogs