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

Photogallery South Africa Bans Travelers From Ebola-stricken Countries

South Africans returning from affected West African countries will be thoroughly screened, required to fill out medical questionnaire, health minister says More

Multimedia UN Launches ‘Biggest Aid Operation in 30 Years’ in Iraq

Move aims to help thousands of Iraqi religious minorities who fled their homes as Kurdish, Iraqi government forces battle Sunni insurgents More

Video African Media Tries to Educate Public About Ebola

IT specialists, together with radio and TV reporters, are battling misinformation and prejudice about disease More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Gaza Conflict, Hamas Popularity Challenge Abbasi
X
Scott Stearns
August 21, 2014 9:20 PM
The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Gaza Conflict, Hamas Popularity Challenge Abbas

The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Nigeria's 'Nollywood' Movie Industry Rolls in High Gear

Twenty years after its birth in a video shop in Lagos, Nigeria's "Nollywood" is one of the most prolific film industries on earth. Despite low budgets and whirlwind production schedules, Nigerian films are wildly popular in Africa and industry professionals say they hope, in the future, their films will be as great in quality as they are in quantity. Heather Murdock has more for VOA from Lagos.
Video

Video UN Launches 'Biggest Aid Operation in 30 Years' in Iraq

The United Nations has launched what it describes as one of the biggest aid operations in 30 years in northern Iraq, as hundreds of thousands of refugees flee the extremist Sunni militant group calling itself the Islamic State. As Kurdish and Iraqi forces battle the Sunni insurgents, the fighting has forced more people to flee their homes. Kurdish authorities say the international community must act now to avert a humanitarian catastrophe. Henry Ridgwell reports for VOA from London.
Video

Video Cambodian American Hip Hop Artist Sings of Personal Struggles

A growing underground movement of Cambodian American hip hop artists is rapping about the struggles of living in urban America. Most, if not all of them, are refugees or children of refugees who came to the United States from Cambodia to escape the Khmer Rouge genocide of the 1970s. Through their music, the artists hope to give voice to immigrants who have been struggling quietly for years. Elizabeth Lee reports from Long Beach, California.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video Ferguson Calls for Justice as Anger, Violence Grips Community

Violence, anger and frustration continue to grip the small St. Louis suburb of Ferguson, Missouri. Protests broke out after a white police officer fatally shot an unarmed black teenager on August 9. The case has sparked outrage around the nation and prompted the White House to send U.S. Attorney Eric Holder to the small community of just over 20,000 people. VOA’s Mary Alice Salinas has more from Ferguson.
Video

Video Beheading Of US Journalist Breeds Outrage

U.S. and British authorities have launched an investigation into an Islamic State video showing the beheading of kidnapped American journalist James Foley by a militant with a British accent. The extremist group, which posted the video on the Internet Tuesday, said the murder was revenge for U.S. airstrikes on militant positions in Iraq - and has threatened to execute another American journalist it is holding. Henry Ridgwell has more from London.
Video

Video Family Robots - The Next Big Thing?

Robots that can help us with daily chores like cooking and cleaning are a long way off, but automatons that serve as family companions may be much closer. Researchers in the United States, France, Japan and other countries are racing to build robots that can entertain and perform some simpler tasks for us. VOA’s George Putic reports.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.

AppleAndroid