27.01.2010 - Innovation Code Ltd

Thailand Auto Parts & Accessories (TAPA 2010)
ASEAN Auto Parts Sourcing Hub
The World’s Trusted Source for Auto Parts & Accessories
A Frost & Sullivan Whitepaper
Prepared for
Department of Export Promotion,
Ministry of Commerce,
Royal Thai Government
© 2009 Frost & Sullivan
1
TABLE OF CONTENT
1.0
ASEAN at a Glance
2.0
Thailand
2.1
Macro Economic Overview
2.2
Automotive Overview
2.3
Automotive Policies
2.4
Automotive Industry Supply Chain Structure
2.5
Thailand Automotive Cluster
2.6
Profile of Automotive Assemblers & Suppliers
3.0
ASEAN as a Sourcing Hub
4.0
Advantages of Sourcing from Thailand
5.0
Thailand Auto Parts & Accessories (TAPA 2010) Exhibition
© 2009 Frost & Sullivan
2
1.0 ASEAN AT A GLANCE
The Association of South East Asian Nations (ASEAN) encompasses 10 South East
Asian countries that include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
Philippines, Singapore, Thailand and Vietnam.
ASEAN region has a population of around 526 million and a combined GDP of
US$1, 271 billion with a growth rate of over 5% per annum. The car parc is in the
region of 26 million which indicates a car penetration rate of about 25 per 1,000.
This shows a tremendous growth potential for this region in the future.
Source: Frost & Sullivan
© 2009 Frost & Sullivan
3
Population
(Million)
Working
Population
Below national
poverty line
Unemployment
Literacy rate
Indonesia
228
66%
17%
10%
90%
Philippines
91
60%
41%
7%
93%
Vietnam
84
64%
37%
2%
90%
Thailand
63
69%
18%
1%
93%
My anmar
47. 74
65%
6%
90%
Malaysia
27
63%
2%
4%
89%
Cambodia
14.24
59%
36%
2%
74%
Laos
6.67
55%
45%
1%
69%
Singapore
4.59
72%
0%
4%
100%
Brunei
0.38
47%
0%
5%
93%
Source: Frost & Sullivan
ASEAN countries are economically diverse in terms of population, GDP, poverty,
unemployment, literacy rates etc. Population varies from 0.34 million (Brunei) to 228
million in Indonesia. GDP varies from US$8.6 billion (Cambodia) to US$428 billion
(Indonesia). Per capita GDP varies from US$1800 (Cambodia) to US$51,000
(Brunei). Laos and Cambodia have a high percentage of its population with income
below poverty line at 45% and 36% respectively while Brunei and Singapore have
almost 0% of its population with income below the poverty line. Almost all the
countries in ASEAN region have high literacy rates.
© 2009 Frost & Sullivan
4
Only 5 ASEAN countries have automotive production capabilities.
ASEAN Countries on Growth Curve
400
Brunei
Car Penetration Per 1000
350
300
Malayasia
250
200
C1
C3
C2
C4
150
Singapore
100
50
Philippines
Thailand
Indonesia
0
$3,000
$7,000
$10,000
Cluster 4 : Markets of Tomorrow
Cluster 3 : High Growth
Vietnam
Thailand
Laos, Cambodia
Indonesia
Myanmar
Philippines
$50,000
Per Capita GDP (PPP Basis)
Cluster 2 : Steady
Growth
Cluster 1 : Nearing
Stagnation
Malaysia
Brunei, Singapore
Source: Frost & Sullivan
Brunei and Singapore are saturated markets due to higher per capita GDP (>
US$50,000) and car parc penetration of over 150 per 1000. Malaysia is on the steady
growth curve based on per capita GDP of US$10,000 and car parc penetration of
US$10,000-US$50,000. Countries such as Indonesia, Thailand and Philippines have
a higher growth potential due to considerable per capita GDP of US$7,000US$10,000 and relatively lower car parc penetration (<50 per 1000). Cambodia,
Myanmar, Vietnam, Laos have a bright future in the automotive industry due to
increased per capita GDP (US$3,000-US$7,000) over the coming years and very low
car parc penetration (<25 per 1000).
The combined automotive production ASEAN was over 2.59 million vehicles in 2008
with Thailand being the largest production base in ASEAN.
© 2009 Frost & Sullivan
5
Countrywise Production within ASEAN
1,600
1,400
1,200
1,000
800
600
400
200
0
2 006
2007
Malaysia
2008
Indonesia
Thailand
Philippinnes
2 0 0 9 (est)
Vietnam
2.0 THAILAND
2.1 Macro Economic Overview
Thailand is an emerging economy that lies in the heart of Southeast Asia and is
considered as a newly industrialized country. Thailand is the 21st most populous
country in the world with a population of over 65 million and 67% of its population
under the age of 39 years old.
Country/Territory
2008 Rank
2009 Rank
China
1
1
India
2
2
United States
3
3
Indonesia
4
4
Brazil
5
5
Turkey
17
18
Dem.Rep. Of Combo
18
19
Iran
19
20
Thailand
20
21
France
21
22
© 2009 Frost & Sullivan
6
Thailand’s economy is the 2nd largest economy in ASEAN, growing at an average of
4%-6% over the past 3-5 years mainly due to increased exports in Thai rice, textiles
and footwear, fishery products, rubber, jewelry, automobiles, computers and electrical
appliances. According to the latest annual World Bank’s Doing Business report,
Thailand ranks 13th among over 180 countries and 4th in East Asia in the ease of
doing business in 2009.
Economy
2006 Rank
2007 Rank
2008 Rank
2009 Rank
Singapore
2
1
1
1
New Zealand
1
2
2
2
United Sates
3
3
3
3
Hong Kong, China
7
4
4
4
Denmark
8
5
5
5
Thailand
20
18
15
13
Malaysia
21
25
24
20
Taiwan, China
35
47
50
61
China
91
93
83
83
Vietnam
99
104
91
92
Source: World Bank Group, 2009
2.2 Automotive Overview
Growth Zone Analysis Thailand Vs other countries
900
United States
Canada
United States
France
800
Italy
Germany
Japan
Italy
Australia
Thailand
Japan
Germany
France
600
Car Parc per 1,000
Australia
Malaysia
700
Korea
Great Britain
Canada
Great Britain
500
2002
Brazil
400
2030
Korea
300
Malaysia
China
200
Thailand
Brazil
100
India
India
China
0
0
10
20
30
Per Capita Income (PPP Basis) (US$ '000)
© 2009 Frost & Sullivan
40
50
60
7
Currently, the automotive industry is the third largest industry in Thailand with an
estimated total workforce of more than 300,000 employees. Motor cars, automotive
parts and accessories exports generate the second biggest export revenues for
Thailand accounting for over US$15.6 billion in 2008.
Thailand is named the “Detroit of Asia” being the second largest producer of 1 ton
pick-up trucks and the fifth largest automotive assembler in APAC region with an
annual production capacity of around 1.89 million vehicles in 2008. Automotive
assemblers have invested 77 billion baht in Thailand in 2008 with 251 projects being
currently undertaken at present making Thailand the largest automotive producer in
Southeast Asia.
With a highly developed level of infrastructure and proximity to Asia’s biggest
markets, Thailand is a natural regional logistics hub. Geographically, Bangkok is
closer to the heart of Asia than any other Asian city aside from Shanghai and Taipei,
an incredibly important factor when considering transportation costs, time to delivery
of goods, and access to supply and distribution networks.
Vehicle production in Thailand is likely to increase from 1.2 million units in 2006 to
approximately 2.1 million units in 2016 with forecasted growth of 6%.
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
One ton Pickup Passenger Cars Others
Source: Frost & Sullivan
Japanese OEMs such as Toyota, Isuzu, Mitsubishi and Honda are likely to have an
increased production capacity in 2016 accounting for over 75% total Thailand
capacity.
© 2009 Frost & Sullivan
8
Annual Production Capacity by OEM
Capacity (Units) in
2008
Capacity (Units) in
2016
Toyota Motor Thailand
550,000
730,000
Isuzu Motors (Thailand)
220,000
265,000
MMC Sittiphol
206,000
208,000
Honda Automobile
(Thailand)
120,000
273,000
General Motors Assembly
Center
160,000
250,000
Auto Alliance (Thailand)
155,000
275,000
Siam Motor and Nissan
139,000
212,000
Others
75,000
120,000
TOTAL
1,625,000
2,333,000
Assembly Plants
Brand
Source: Frost & Sullivan
2.3 Automotive Policies
Free Trade Agreements of Thailand with other nations
Automotive policy regulations are aiding global players to set up their production,
assembly, retail base in Thailand. One of the most successful Thailand policy
measures has been the Free Trade Agreement (FTA) with other nations such as
ASEAN 6, Australia, China, India and New Zealand.
Source: Frost & Sullivan
© 2009 Frost & Sullivan
9
Free Trade
Agreement
Effective
Date
FTA Effect
Thailand - ASEAN
January 1993
Autos and auto parts components exports were valued at US$ 1.5
billion to ASEAN region from Thailand. ASEAN’s pursuit of FTAs
with major trading partners, Thailand and its foreign investors
may gain access to new markets such as South Korea, Japan
and India.
Thailand - China
October 2003
Early harvest agreement on farm trade alone. Auto parts and
accessories are not included in the FTA at present.
Thailand – India
September
2004
Thailand - Australia
January 2005
Thai auto components for cars, UVs and commercial vehicles, to
be cheaper in Australia, with consumers having wider choice
Thailand – New
Zealand
July 2005
Foreign manufacturers in Thailand, who have set up plants, to
have access to New Zealand market in future, mainly for pick-up
trucks initially and other vehicle subsequently as the FTA
develops
Indian component manufacturers expected to set up bases in
Thailand to serve domestic and regional economies. FTA also
aids in Thailand aftermarket parts to penetrate Indian automotive
market.
Source: Frost & Sullivan
Eco Car: Strategic Initiative from Thailand
The eco-car idea was conceived in Thailand in 2007 to reduce energy consumption,
preserve the environment and lessen the dependence on foreign oil. The eco-car
policy aims to showcase Thailand as the next generation production hub for cars that
are environmentally-friendly including alternative fuel cars and hybrids. Seven
manufacturers in Thailand have already shown commitment to invest in the eco-car
project with an estimated annual capacity of about 700,000 units by 2015.
© 2009 Frost & Sullivan
10
Manufacturer
Production target
Prod
starts
Investments
(Million baht)
Models expected
Mitsubishi Motors
107K units
7,700
2010
1.3L sedan Concept CX Asian version,
more than 1 model on same platform
Toyota Motor
Thailand
100K units
6,600
2012
1.1L to 1.3L sedan, rebadged Myvi, 2nd
gen Boon Passo, new global A car
Tata Motor
100K units
7,300
2010
1L to 1.3L sedan, 1.3L diesel, luxury
Nano version, 2 models same platform
Suzuki Motors
138K units, 25 to 35K per
year
9,500
2010
With GM, Maruti Suzuki global, Wagon
R, Suzuki Cervo
Siam Nissan
Motors
120K units, 20k to 25K per
year
5,500
2010
Next Generation of Micra/March at
least 2 models on same platform
Honda
(1st Eco Car)
120K units about 20 to
30K per year
6,700
3Q 2009
1.3L sedan, global WOW concept car,
2/3 models on same platform
Ford Mazda (AAT)
100K units, 175K cap
additional 140/yr
20,800
2009
Ford Verve concept/Fiesta and Mazda
2
Source: Frost & Sullivan, www.boi.go.th
Eco-cars for exports even to less developed countries have to comply with eco-car
specifications to enable manufactures to receive their eco-car incentives. The actual
production capacity must not be lower than 100,000 units per year from the fifth year
of the projects operation. OEMs have to cater to certain regulations to get incentives
from the Royal Thai Government. The main regulation specified that the eco-cars
should be fuel efficient, consuming not over 5 liters per 100 kilometers and should
have a minimum pollution standard of EURO4 or higher, emitting no more than 120
grams of carbon- di-oxide per kilometer. The car should also satisfy passenger safety
standards for both front and side impact as specified by UNECE Reg. 94 and Reg.95
respectively.
Eco-Cars (700k)
CBU Export (70%)
• Model variants of similar platform
acceptable
• But as per specifications and
requirements of Eco car regardless
of destinations
• Meets stringent EU standards
CKD Export (20%)
• CKD parts have to be the key
engine components manufactured
in Thailand specifically for eco car.
• 40% local or ASEAN content in
order to export to ASEAN under
AFTA
• ASEAN country like Indonesia may
choose this to support local
industries
Domestic Market
(10%)
• Fuel efficient
• Environment friendly
• First time buyers likely to be
attracted
Source: Frost & Sullivan
© 2009 Frost & Sullivan 11
Thailand Automotive Industry Master Plan
Thailand’s master plan for the automotive industry aims to create a predictable
environment for business operations within Thai automotive industry. Thailand’s
vision is to position itself as the production hub in Asia that adds value to the country
in terms of having a strong domestic supplier base by 2011.
Master Plan for Automotive Industrial
Development
(2008-2011)
Automotive
Motorcycles
•
Produce vehicle more than
2 million units per year in
2011
•
•
Export market to be more
than 55%
•
•
Production of more than 4
million units per year
Export of over 2 million units
Production value of more
than 1 trillion baht
Component Parts
•
Produce OEM & REM Parts
with high quality standards
and reach an export value
more than 400,000 million
baht per yr.
•
Auto Parts suppliers to use at
least 70 percent local content
•
Develop capability in design,
research and development
Source: Frost & Sullivan
2.4 Auto Industry Supply Chain Structure
Thailand has about 16 automotive and 7 motorcycle assemblers at the top of the
supply chain that is driving the growth in the automotive sector. Vehicle assemblers
are all large scale enterprises that are joint ventures or foreign owned. Furthermore,
the value chain consists of around 648 large, medium and small scale tier- 1
suppliers that are either foreign majority-owned company, Thai majority-owned
company or wholly Thai owned company. Foreign majority-owned suppliers
contribute the bulk of Tier-1 suppliers with a percentage share of approximately 47%
while Thai majority-owned companies account for around 30% and wholly owned
Thai companies share is minimal with 23% in Tier-1 suppliers category.
Almost 80% of foreign majority-owned Tier-1 suppliers are Japanese firms belonging
to keiretsu groups since assemblers at the top of the value chain are mostly
Japanese OEMs. Japanese tier-1 companies can be categorized into three groups: a
member in Japanese family companies, a joint venture with Japanese technology
owners, and a company having technical assistance or licensing agreements with
Japanese firms. At the bottom end of the value chain, there are more than 1,100
small and medium local Thai enterprises producing replacement parts.
© 2009 Frost & Sullivan 12
Source: Thailand Automotive Industry Directory
The past few years has seen an increase in the number of non-Japanese auto
parts manufacturers because of investments from Ford and General Motors in
Thailand’s automotive industry. The American assemblers have brought a number
of their own Tier-1 suppliers to Thailand. Though European assemblers have
entered the Thai market earlier, they tend to have fewer local part suppliers due to
their small assembling volume.
In recent years, many new overseas joint ventures companies were set up to supply
parts and accessories to the global manufacturers. The replacement market (REM)
has greater volume consumption from independent Thai companies while the rest of
the output is consumed by original equipment manufacturers (OEM). The local part
manufacturers supply approximately 80% of all parts used for assembly of pick-up
trucks, around 55% is supplied for passenger cars and nearly 100% for motorcycles
manufacture and assembly. Locally produced or assembled parts include engines,
suspension control and spring, axles, hubs, propellers shaft, brakes, clutches,
steering system, body parts, electronic parts, air conditioning, tires, wheels, internal
and external trim components and glass.
© 2009 Frost & Sullivan 13
2.5 Thailand Automotive Cluster
Steel
Plastics
Assemblers
Motorcycles
Passenger
Cars
Distribution
Pick up Trucks
Finance
Rubber & Tires
Testing
Electronics
Components and Module Makers (Tier-1)
Glass
Specialised Consultants
Engines, Drivetrains, Steering, Suspension, Brake, Wheel, Tire,
Bodyworks, Interiors, Electronics and Electrical Systems
Services
Leather & Fabric
Parts (Tier-2 and Tier-3)
Machinery
Stamping, Plastics, Rubber, Machining, Casting, Forging, Function,
Electrical, Trimming
Globally Competitive
Tools
Mold & Die
Regionally Competitive
Government
Educational
and Technical
Institutions
Associations
Nationally Significant
Nationally Insignificant
Jigs & Fixture
Source: Team revision of Christian Ketels, “Thailand’s Competitiveness: Key Issues in Five Clusters”, ISC/HBS
Thailand Automotive Cluster comprises assemblers, components and module
makers, parts suppliers, associations, government, educational and technical
institutions with support in terms of distribution, finance, testing, specialized
consultants and services. The cluster continuously studies the shortcomings of the
automotive industry in Thailand and improvements that are needed to make Thai
automotive industry globally competitive.
Presently, the pickup truck is the only segment in Thailand that is globally competitive
in the automotive sector. However, the Thai automotive cluster is trying to address
some of the issues in terms of scarcity of skilled workers and low management
abilities in the area of quality control to match international standards. Another major
issue facing the cluster is the inability of Thai parts companies to compete with
international firms in terms of technology and quality standards. Some of the issues
faced have been solved with the support of foreign automotive companies in
Thailand. For example, Toyota has engaged more local suppliers and helped them
move upwards in value chain. Thailand has already started moving in this direction
by leveraging the existing presence of MNCs to deepen its cluster by inviting them to
set up more local R&D facilities, product development and marketing activities
thereby improving the skill sets of employees and hence projecting Thailand as an
attractive destination for setting up automotive assembly, parts and service centers in
the Asia Pacific region.
© 2009 Frost & Sullivan 14
2.6 Profile of Automotive Assemblers and Supplier Bases in
Thailand
The Thai automotive industry is clustered around industrial estates in Bangkok and
surrounding areas provinces especially in Samut Prakan, Chachoengsao, Chonburi
and Rayong. The largest number of automotive assemblers are located in Samut
Prakarn province followed by Rayong.
Northern
Northeast
Bangkok
Rayong
Samut Prakarn
Samut Sakhon
Nakhon Pathom
Nonthaburi
Pathum Thani
Central
South
Source: Frost & Sullivan
The industrial estates in the Central province are mostly designed to serve the
automotive industry with easy to access infrastructure such as local roads, highways,
railways and nearby ports. Some manufacturers have established their own
components market with local suppliers and taking care of the delivery themselves to
ensure that their production is not delayed. For overseas exports, finished goods are
shipped through ports located in Bangkok, Chonburi and Rayong.
Most automotive suppliers are located near the vehicle assemblers. Most of Thai
suppliers have a strong portfolio in the automotive body parts segment due to lack of
skills required in this segment compared to other auto parts. Bangkok has the highest
number of concentration with approximately 230 suppliers followed by Samut Prakarn
with 158 suppliers.
© 2009 Frost & Sullivan 15
Pathumthani
Total Suppliers : 39
Body Parts
18%
Engine Parts
13%
Tran &
Steering Parts
Electrical
Parts
Chonburi
Total Suppliers : 55
8%
Bangkok
Total Suppliers : 232
13%
Accessories
8%
Suspension &
Brake Parts
10%
Bo d y Parts
25%
En g i ne Parts
22%
Tran & Steering Parts
15%
Electrical Parts
9%
5%
Bo d y Parts
9%
Ac c es s ories
Engine Parts
6%
Suspension & Brake Parts
4%
Tran & Steering Parts
6%
Mo l d & Di e
4%
Electrical Parts
6%
Accessories
6%
Suspension & Brake Parts
4%
Mo l d & Di e
3%
Rayong
Total Suppliers : 41
Samut Prakarn
Total Suppliers : 158
Bo d y Par ts
22%
Bo d y Parts
24%
En g i ne Parts
8%
En g i ne Par ts
15%
Tran & Steering Parts
8%
Tran & Steering Parts
15%
El ec tr i c al Parts
15%
Electrical Parts
10%
Ac c es s ories
7%
Suspension & Brake Parts
3%
Mo l d & Di e
4%
Ac c es s ories
7%
Suspension & Brake Parts
12%
Mo l d & Di e
2%
Source: Thai Automotive Institute
Auto parts and accessories exports have increased over the past few years and
accounted for US$8.4 billion in 2008. Parts and accessories contributed almost 60%
of the revenues while piston engine and accessories (25%), motorcycle parts and
accessories (9%), ignition parts for engines (2%), bicycle parts (1%) and other
vehicle parts and accessories (2%) contributed for remaining export revenues.
Indonesia was the largest export destination for Thailand auto parts and accessories
in 2008 contributing 20% of the export revenues.
Source: Department of Export Promotion, Ministry of Commerce, Royal Thai Government
© 2009 Frost & Sullivan
16
Export Revenues (Million USD)
In the last 5 years, Thailand has witnessed an increase in investments in its
automotive parts segment. Most of the international Tier 1 suppliers now have plants
in Thailand. Auto Alliance (Thailand) currently purchases approximately Bt 60 million
worth of components annually from 177 different suppliers, of which 90% are local.
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2006
2007
2008
CBU
Engines
Spare Parts
Jig and Die
OEM Parts ‐ Body
OEM Parts ‐ Component
Source: The Thai Automotive Industry Association
There has been an increase in investments and sales related to motorcycles, parts
and accessories in Thailand.
Production
Export
Sales
Year
Total Units
Moped Units
Sport Units
Total Amount
CBU & CKD
OEM & Parts
Spare Part
Total Units
2005
2,309,214
2,218,959
90,255
1,027.0
22,768.99
11,428.22
729.56
2,112,426
2006
2,075,579
2,000,617
74,962
1,126.5
24,797.24
13,652.26
690.98
2,054,588
2007
1,652,773
1,563,434
89,339
1,244.2
27,298.42
14,008.11
1,007.97
1,598,613
2008
1,923,651
1,767,429
156,222
1,384.2
26,414.69
20,022.56
638.82
1,703,376
Amount : million USD
Source: The Thai Automotive Industry Association
Most of the suppliers in Thailand are certified with QS 9000 certification for quality.
Systems used in auto parts assembling, parts and servicing are ISO 9000 certified for
quality. Surveillance audits are conducted once every 6 months to check for quality
compliance. Assemblers and parts suppliers in Thailand are also striving to comply
© 2009 Frost & Sullivan 17
with non-quality standards to improve the outlook of the automotive industry. Some of
the non-quality certifications include ISO 14001 (Environmental – most of the
assemblers and component suppliers have this certification in Thailand), OHSAS
18001 (Operational safety aspects – still at a nascent stage), SA8000 (Social aspects
– child labour law, labour law compliance) safety and emissions test compliance.
“It is a standard for suppliers in Thailand to
be ISO certified. If you are not certified, then
suppliers will have a tough time competing
in Thai parts and accessories market”
General Motors, Thailand
Parameters
T ier -1 Supplier
Sales
$10 - $60 Million
Structure
3 – 5+ Plants
T op Management
F amily Owned, Entrepreneurial, Multinational, Some Joint
Ventures
Manager ial
Masters Degree, MBA
Workf orce
85% High School Graduates, Vocational T r aining
Maintenance / Skilled T r ades
Diploma or Vocational Certif icates
Quality
<100ppm (f or top tier- 1 suppliers)
>1000ppm (for other tier-1 suppliers)
>5000ppm (for most of the supply base)
Delivery
Some OEMs pushing f or Just In T ime
Cost
F iercely cost competitive industry
Inventory
Higher than the benchmark f igures
Quality Awar eness and Systems
Implemented IMS, T QM/T PM, Six Sigma
Source: OMEX Co Ltd
© 2009 Frost & Sullivan
18
3.0 SOURCING FROM ASEAN
ASEAN has the potential to be an auto parts and accessories sourcing hub. As a
group, ASEAN-member countries can provide a wide range of components and
assemblies to OEMs. Toyota and Honda recognized the importance of ASEAN and
have strong supply chain management in the region.
Source: Frost & Sullivan
Since Thailand is the largest production base in ASEAN, naturally it becomes the
nerve center of the supply chain for most automotive companies. There are several
advantages of sourcing from Thailand.
Thailand as a Sourcing Hub
Global Automotive Suppliers Operating in Thailand
Almost all the top global automotive suppliers operate in Thailand with Japanese
players being the most dominant mainly due to Japanese OEMs driving the market.
However, US and European suppliers are not far behind and are having a
considerable presence in the Thai automotive market.
© 2009 Frost & Sullivan 19
Japanese Global Suppliers
Japanese Global Suppliers
•Aisin Seiki
•Alpine
•Asahi Glass
• Bridgestone Corporation
• Calsonic Kansei Corporation
• Clarion
• Daido Metal
• Denso Corporation
• Exedy Corporation
• Fujitsu Ten
• Hitachi
• Kayaba Industry
• Keihin Corporation
• Koito Manufacturing Company
• Koyo Seiko
• Matsushita Communication Ind
• Mitsuba Corporation
• NGK Spark Plug Company
• NHK Spring
• Nichirin
• Nippon Seiki
• NOK Corporation
•NSK
• NTN
• Showa Aluminium Corporation
• Stanley Electric Company
• Sumitomo Electric Industries
• Sumitomo Rubber Industries
•Takata Corporation
• Tokico
European Global Suppliers
•Autoliv
• Bosch
• Draxmaier Gruppe
• GKN
• Hella
• Mahle
• Michelin
• Saint Gobain
• SKF
Other Global Suppliers
•Arvin Meritor
• Dana Corporation
• Delphi Automotive Systems
• Engelhard Corporation
• Exide Technologies
• Federal-Mogul Corporation
• Goodyear Tire and Rubber Co
• Hayes Lemmerz
• Johnson Controls
• Lear Corporation
• TRW
• Valeo
• Visteon
Source: SVI
4.0 ADVANTAGES OF SOURCING FROM THAILAND
Module Production System,
Pick-up and Eco car
production base, Global
Supplier network
HRD Collaboration – Research
Institute, Education System,
Training System and
Certification
Free Trade Agreements (FTAs)
within ASEAN and other
regions
Thailand parts and accessory
suppliers cater to international
energy and environment
Standards
Centralised location of OEMs
and suppliers
Source: Frost & Sullivan
© 2009 Frost & Sullivan 
20
Module Production System, Pick-up and Eco-Car Production Base,
Global Supplier Network
Thailand is the second largest producer of pick-up trucks with an annual
production of over 1 million units in 2008 and will likely be the future
production base for eco-cars with annual production capacity of 700,000 units
in 2015. Thailand also has the advantage of having a global supplier network
and local Thai companies are acquiring the technology, production expertise
from OEMs and suppliers to improve the quality, production lead times and
increased productivity. Thailand has good production control processes and
good systematic checks and procedures that will help to continuously improve
quality and productivity.

Human Resource Development (HRD) Collaboration – Research Institute,
Education System, Training System and Certification
Skilled workforce improves the quality of products and is very critical in the
auto parts industry. Thailand already has HRD collaboration with different
research and education institutes for this purpose so that the workforce is
groomed right from the early stages. Also, the workers are being trained and
certified to be globally competitive. For example, Nissan’s skill certification
system in Thailand enables workers to acquire basic skills required for the job
and all the workers are required to attain certain skills to be able to perform a
particular job.

Free Trade Agreements (FTAs) within ASEAN and other regions
FTAs are likely to act as a major driver to increase sourcing from Thailand.
Thailand’s auto parts and accessories have subsidized tariffs under FTA
agreement. For example, the FTA signed between Thailand and Australia will
see tariffs on all automotive parts, components and accessories phased to
zero in 2010 from 20% currently.. These incentives are likely to act as a driver
for sourcing from Thailand.

Thailand Auto Parts and Accessories Suppliers Cater to International
Energy and Environment Standards
Almost all the suppliers in Thailand are QS 9000 and ISO 9000 certified for
quality that will enable easier sourcing since the quality of assembling
products, production systems are based on international standards with
minimal defects. Suppliers in Thailand are also striving to achieve non-quality
certifications such as ISO 14001 (Environmental – Most of the assemblers and
component suppliers have this certification in Thailand).
© 2009 Frost & Sullivan 
21
Centralized Location of OEMs and Suppliers
Thailand has a much centralized value chain when it comes to auto parts and
vehicle assembly. Most of the auto companies and suppliers are located close
to Bangkok and Rayong and hence sourcing of components will be easier
from a central location. Thailand is a “One Stop Center” for sourcing auto parts
and components.
5.0 THAILAND AUTO PARTS & ACCESSORIES EXHIBITION (TAPA
2010)
The 4th Thailand Auto Parts & Accessories (TAPA 2010) exhibition is set to be held
from April 28 to May 2, 2010 at Bangkok International Trade & Exhibition Center
(BITEC), Bangna, Bangkok. The event will be ASEAN’s largest auto parts and
accessories show. The exhibition brings together Thai and regional manufacturers
(OEM/REM) of vehicles, auto parts, spare parts and accessories to meet buyers from
around the world.
As a regional automotive manufacturing hub, Thailand’s automotive suppliers have
the expertise to meet international standards in terms of quality, delivery and cost for
both original equipment and replacement markets (OEM/REM).
The export-oriented nature of the industry gives it the necessary scale and
advantage to be price competitive, while providing the engineering design capabilities
to develop automotive parts for global needs. TAPA 2010 will be the best place to
source for auto parts and accessories from ASEAN. It will be your one-stop center to
source for a variety of automotive parts and accessories.
TAPA 2010 is designed to meet the expansive sourcing needs of the automotive and
accessories industry. It is expected to be ASEAN’s premier sourcing exhibition.
ASEAN has many quality auto part and accessories companies and they have been
recognized worldwide for their high standards whether in OEM/REM parts, spare
parts or accessories. The Department of Export Promotion, Ministry of Commerce,
Royal Thai Government is keen to work together with other countries in ASEAN to
promote this region as the auto parts sourcing hub of the world.
TAPA 2010 will see about 500 qualified exhibitors across ASEAN displaying their
products at more than 10,000 square meters at BITEC, Bangna. More than 16,000
visitors from ASEAN, Africa, India, Bangladesh, China, Japan, Middle East, Europe,
Latin America and USA are expected to attend the exhibition.
© 2009 Frost & Sullivan 22
One Stop Center
With an extensive list of exhibitors from around the world, TAPA 2010 guarantees
excellent opportunities to meet quality exhibitors and network with trade partners,
suppliers, government officials and media. Visit and see the latest innovative
products and technologies in the auto industry.
Excellent Opportunities
Organized by the Department of Export Promotion, Ministry of Commerce, Royal
Thai Government biennially, TAPA is the most comprehensive, innovative and
exciting automotive exposition ever staged in Asia, providing the best global sourcing
in the automotive industry, including advanced auto parts. This event provides up-todate information, new trends as well as product designs. It brings together Thai and
regional manufacturers (OEM/ REM) of vehicles, auto parts, spare parts and
accessories to meet buyers from around the world.
Buyer’s Pavilion
Purpose of this space
• Buyers have a convenient space to meet sellers and hold discussions
• They can also display some publicity material and brand the stall
Town Hall Sessions on Day 1 for Key Buyers
• Buyers to hold 1 hour open presentations about their sourcing plans for
ASEAN
• They can specify the components they are looking for, profile of
prospective vendors, their requirements and procedures
• Exhibitors can register for such sessions and attend them free of cost
• Interested exhibitors can later seek appointments with relevant Buyers
© 2009 Frost & Sullivan For more information on TAPA 2010, please contact:
Department of Export Promotion, Office of Export Service 2
Tel +66 (0) 2512-0093 ext.272, 250, 285
Fax. +66(0) 2513 1565, 2512-2234
E-mail: [email protected], [email protected]
Website: www.thailandautopartsfair.com,
www.thaitradefair.com
About Department of Export Promotion
Thailand's Department of Export Promotion is functioned as the trade information service provider for Thai
manufacturers and exporters as well as foreign importers. The Department is responsible to develop and
perform activities that promote Thailand’s company and trade and increase the competitiveness of the
export sector for instance, the expansion of production bases overseas.
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© 2009 Frost & Sullivan