Thai vehicle production expected to grow to 2 million units in 2018

OEMs applying for Thai government's EV incentive programs

2018/04/16

Summary

In 2017, Thai vehicle production increased to 1.99 million units, up 2.3% from the previous year. By vehicle type, production of passenger cars grew 1.7% year-over-year (y/y) while output of commercial vehicles rose 2.7%. Among passenger cars, production of "eco-cars," fuel-efficient compact cars that comply with the government's eco-car regulations, grew only 1.4% y/y. Out of all the commercial vehicles built, output of 1-ton pickup trucks excluding passenger pickup vehicles (PPV) increased 5.4% y/y and accounted for 48.3% of total production. Sales volume in Thailand in 2017 increased for the first time since 2013, achieving 870,000 units, a 13.4% increase compared with 2016. Vehicle sales climbed owing to the economic upturn, new model launches, and the expiration of the five-year lock-up period for vehicles bought under the first-time car buyer scheme from 2011 to 2012. Meanwhile, exports from Thailand fell 4.1% y/y to 1.14 million units. While exports to Oceania increased, shipments to the Middle East dropped significantly due to political instability.

The Federation of Thai Industries (FTI) forecasts that, in 2018, vehicle production will increase 0.6% y/y to 2 million units, and sales volume will grow 3.3% y/y to 0.9 million units. Exports are projected to fall 3.5% y/y to 1.1 million units (announced in January 2018). The FTI's conservative outlook came from instability in the global economy and concern for trade policies of export counterparts.

 

The Thai government set up an initiative to make the country a hub for production of electric vehicles (EVs) to attract foreign investments for high value-added and advanced industries and promote the use of green cars. In March 2017, the government approved investment incentives that exempt the manufacturers of electrified vehicles (including hybrids (HVs), plug-in hybrids (PHVs) and EVs) from corporate income taxes for a certain period. Toyota, Nissan, Honda, Mazda and Suzuki already applied for HV incentives. In addition, BMW applied for PHV incentives and Daimler for PHV and EV incentives.

Regarding production facilities, SAIC Motor-CP built a new plant with an annual production capacity of 100,000 units in December 2017 and transferred operations from the existing facility, which has an annual capacity of 50,000 units. Tata began production of their vehicles at a new contract assembler in October 2017. Subaru plans to build its vehicles in Thailand in partnership with Tan Chong Group from 2019. Mazda opened an engine machining factory at its powertrain plant in January 2018.

 

Related reports:
ASEAN: Vehicle sales recover, shifting from eco-car policies to EV incentives (Jan. 2018)
Thai production expected to increase 2.6% to 2 million units in 2017 (Jan. 2017)

 



Exports in 2018 to potentially be affected by Vietnam and U.S. trade policies

Asia (including Japan), Oceania and the Middle East were the key destinations for vehicle exports from Thailand until 2015. However, exports to the Middle East have been falling since 2016 due to unstable politics. In 2017, shipments to the region declined 28.1% y/y. Meanwhile, exports to Oceania including Australia, in which local production of vehicles was discontinued in October 2017, grew 7.8%, and shipments to North America climbed 6.1%. Overall exports in 2017 declined 4.1% y/y. In the same year, shipments of auto parts grew 15.5% y/y to USD 1.98 million.

According to FTI's outlook, exports from Thailand in 2018 are projected to fall 3.5% y/y to 1.1 million units and may be further affected by global trade policies. Recently, shipments to Vietnam have been growing and are expected to increase more as the country's tariffs on imported vehicles were eliminated from 2018 as a result of its full implementation of the ASEAN Economic Community pact. However, the government of Vietnam introduced non-tariff barriers including time-consuming inspections for the imported vehicles. Exporters from Thailand to Vietnam are facing difficulties. In the U.S., which is the leading destination for the auto parts exports from Thailand, President Donald Trump's tariff policy raises concerns as it may affect Thai exports. Nonetheless, vehicle exports from Thailand increased 3.3% y/y for the period January-February 2018. FTI says that, if this trend continues, it will reconsider its outlook for 2018 by midyear.

 

Thai vehicle production, exports and sales

(Units)

2014 2015 2016 2017 2018
(Plan)
Jan.-Feb.
2017
Jan.-Feb.
2018
Production 1,880,007 1,913,002 1,944,417 1,988,823 2,000,000 306,757 344,433
Exports 1,128,102 1,204,895 1,188,515 1,139,696 1,100,000 178,334 184,284
Sales in Thailand 881,832 799,632 768,788 871,647 900,000 125,689 142,011
(Exports/Production) 60.0% 63.0% 61.1% 57.3% 55.0% 58.1% 53.5%

Source: for production and exports, the Federation of Thai Industries (FTI); for retail sales in Thailand, Toyota Motor Thailand (TMT)
(Note) 1. Sales in Thailand include imported vehicles.
2. 2018 plans are based on the FTI forecasts released in January 2018.

 

Thai automobile production by vehicle type

(Units)

2012 2013 2014 2015 2016 2017
Passenger cars 957,623 1,071,076 742,678 760,688 805,033 818,440
Commercial vehicles 1,496,094 1,385,981 1,137,329 1,152,314 1,139,384 1,170,383
(of which:) 1t pickup trucks 1,291,641 1,220,096 999,733 966,919 911,360 960,413
Total production 2,453,717 2,457,057 1,880,007 1,913,002 1,944,417 1,988,823
Ratio of 1t pickup trucks 52.6% 49.7% 53.2% 50.5% 46.9% 48.3%

(Note) The 1t pickup truck category doesn't include passenger pickup vehicles (PPVs). The ratio of 1t pickup trucks indicates the percentage of 1t pickup trucks to total production including passenger cars.

 



Thai sales of passenger cars grow 23.7%; pickup trucks rise 7.7%

As for sales in Thailand by vehicle type in 2017, sales of passenger cars increased 23.7% y/y. Among passenger cars, deliveries of eco-cars climbed 36.9% while SUVs, which are getting popular recently, increased 18.1%. Sales grew 7.5% y/y for commercial vehicles, of which 1-ton pickup trucks (including PPVs) increased 7.7% and other commercial vehicles (medium- and heavy-duty trucks) grew 6.6%.

Japanese automakers currently dominate the Thai market with a nearly 90% share. Toyota, the market leader, used to have a 37.0% share in 2014 but has since seen it gradually decline. In its stead, Isuzu, Honda, and Ford have been expanding their market shares. In 2017, Toyota's share shrank from 31.8% in 2016 to 27.5% due to weak sales of the Hilux pickup truck. Isuzu, the second largest automaker, secured an 18.4% share, a slight drop from the previous year, although its sales of D-Max pickup trucks are still strong. Honda, which ranks third in the Thai market, experienced an increase in its market share from 14.0% in 2016 to 14.7% owing to sales growth of the City passenger car and the CR-V SUV.

Toyota Hilux Revo Rocco
Toyota Hilux Revo Rocco
(Bangkok international motor show 2018)


Thai government approves investment incentives for HV, PHV, and EV production

In March 2016, the Thai government set up a roadmap to promote EVs and created an initiative to make the country a hub for their production. This is part of the government's measures to attract foreign investment for high value-added and advanced industries and expand the use of green cars. According to the roadmap, the government aims to have 1.2 million EVs on the road and at least 700-800 charging stations in Thailand by 2036. In March 2017, the Board of Investment (BOI) of Thailand approved investment incentives that will exempt manufacturers of electrified vehicles from corporate income taxes for a certain period of time. The eligible vehicles include not only EVs, but HVs and PHVs as well. Although the HV incentives are less than those for EVs and PHVs, a number of Japanese OEMs have applied for these incentives as HVs are expected to continue to be sold and exported to an extent.

 

Thai government's EV investment incentives

Outline In March 2017, the Board of Investment (BOI) of Thailand approved investment incentives that will exempt manufacturers of EVs from corporate income taxes for a certain period of time. Electrified passenger cars, pickup trucks and buses are eligible. The contents of the tax exemption are based on the technological level of electrified vehicles (EV, PHV and HV). Application should be made by the end of 2017 for HVs and by the end of 2018 for PHVs and EVs.
Tax exemption for vehicle production ・EV production: Exempt from corporate income taxes from five to eight years. When key parts are also manufactured, one year of exemption will be added per part for up to ten years.
・PHV production: Exempt from corporate income taxes for three years. Import duties on machinery are also subject to exemption. When key parts are also manufactured, one year of exemption from corporate income taxes will be added per part for up to six years.
・HV production: Import duties on machinery are subject to exemption.
Tax exemption for part production Manufacturers of ten key EV parts will be exempted from corporate income taxes for eight years. Eligible parts include batteries, traction motors, battery control systems, DC/DC converters, inverters, portable EV chargers, circuit breakers, and EV smart charging systems.
Additional incentives In December 2017, additional incentives were approved. Manufacturers that build their plants in the Eastern Economic Corridor (EEC) will be exempted from 50% of corporate income taxes for five years (application should be made by the end of 2017.)

 

OEMs to join investment incentive programs for HV production (as of March 2018)

Toyota In July 2017, Toyota received approval for HV production investment incentive from the Board of Investment (BOI) of Thailand. The automaker plans to invest THB 19 billion to build its facilities in Gateway City Industrial Estate in Chachoengsao province. Its vehicle assembly plant and battery factory are scheduled to start operations in 2018 and in 2019-2020, respectively. Toyota will annually produce 7,000 HVs, 70,000 batteries and 9.10 million units of other parts including doors, bumpers and front/rear axles at its new plants.
In March 2018, Toyota launched the C-HR Hybrid as the first model introduced under the investment incentive program for HV production. The Thai-made C-HR will be exported to over 100 countries.
Nissan In February 2018, the BOI reportedly concluded that Nissan's Note e-Power is an HV, not an EV. Nissan had applied for the EV investment incentive, requesting the BOI classify the Note e-Power as an EV. However, Nissan will accept the BOI's decision. The automaker had applied for the HV investment incentive for which the application deadline was the end of 2017.
Honda In January 2018, Honda reportedly applied for the HV investment incentive. The company plans to start production of its HV in 2019.
Mazda Mazda has applied for the HV investment incentive. According to the media report in January 2018, the automaker plans to invest THB 11.4 billion in its Rayong Plant to renovate the facilities.
Suzuki In February 2018, Suzuki reportedly applied for the HV investment incentive. The company plans to introduce HV production at its Rayong Plant.

 

OEMs to join investment incentive programs for PHV/EV production (as of March 2018)

Daimler
(EV/PHV)
In January 2018, Mercedes-Benz Thailand reportedly applied for the investment incentive programs for PHV and EV production. The automaker plans to launch a new EV model in 2018.
In March 2018, Daimler announced plans to build a plant for production of PHV battery packs in Bangkok. Together with local partner Thonburi Automotive Assembly Plant (TAAP), Daimler will invest a total of EUR 100 million by 2020 to expand the existing vehicle assembly plant and to build a new battery plant. The battery plant is scheduled to start manufacturing at the beginning of 2019 with an annual production capacity of batteries for 5,000 PHVs. This plant will be the sixth battery plant for Daimler following plants in Germany, the U.S. and China.
Daimler currently sells four PHV models in Thailand: the C350e, S500e, GLE500e and E350e. Daimler aims for sales of PHVs to account for 30% of its total sales in Thailand.
BMW
(PHV)
In January 2018, BMW reportedly applied for the PHV investment incentive. According to media reports in March 2018, BMW plans to invest THB 400 million to expand its Rayong Plant for increased production of electrified vehicles. The plant has a building area of 45,000 square meters, which will be expanded by 5,000 square meters. BMW also plans to start manufacturing batteries for PHVs at the facility in 2019.
BMW now sells PHV models including the 330e, 530e, X5 xDrive40e and 740Le in Thailand. In 2017, sales of PHVs accounted for 13% of BMW's total sales in the country.

 

Other OEM's activities related to EVs

Mitsubishi Mitsubishi Motors plans to apply for the investment incentives for EV and PHV production by the end of 2018.
Nissan Nissan plans to successively launch the new LEAF EV in Australia, Hong Kong, Malaysia, New Zealand, Singapore, Korea and Thailand starting in April 2018. The automaker is also considering the introduction of the model in the Philippines and Indonesia.
FOMM FOMM, a Japanese EV startup, invested THB 206 million through FOMM Asia, its joint venture established with a Thai company, to build an EV assembly plant in Amata Nakorn Industrial Estate in Chonburi province. FOMM plans to start assembly of a compact EV at the end of 2018 with an annual production capacity of 10,000 units. FOMM is expected to raise its annual capacity to 15,000 units if demand is strong (reported in March 2018).
FOMM unveiled the name of its compact EV as the FOMM ONE at the Bangkok Motor Show held in March 2018. This four-seat model has a length of 2.5m, a width of 1.3m and a height of 1.6m. Powered by in-wheel electric motors and cassette-type replaceable lithium-ion batteries, the FOMM ONE will travel as much as 160km on a six-hour charge with a top speed of 80km/h. In case of flood emergencies, the model will float in the water and can be used as an amphibious car. Its price is set at THB 664,000 in Thailand. Export of the model to Europe and the ASEAN region will be considered within one or two years.


SAIC Motor-CP builds a new plant; Subaru to start local production in 2019

In Thailand, automakers and local assemblers have annual production capacities of 3.3 million units in total, but capacity utilization remains at 60-70%. Thus, there is little investment for new production facilities. In December 2017, SAIC Motor-CP built a new plant with an annual capacity of 100,000 units and transferred production from its existing plant that used to manufacture 50,000 units per year. Tata started production at its new contract assembler in October 2017. Subaru is scheduled to begin production with Tan Chong group in 2019. In January 2018, Mazda opened an engine machining factory at its powertrain plant. (A table titled "Major OEMs' plants in Thailand" is provided at the end of this report.)

 

SAIC Motor-CP opens a new plant with an annual capacity of 100,000 units in December 2017

In December 2017, SAIC Motor-CP started operations at a new plant in Hemaraj Eastern Seaboard Industrial Estate 2 in Chonburi Province. With an investment of THB 10 billion, the plant has prepared an annual production capacity of 100,000 units. It was built in the Eastern Economic Corridor (EEC) and will be a production hub for right-hand drive vehicles under the MG brand in the world. When the new plant went on stream, SAIC Motor-CP transferred production from its existing plant. At the new plant, the automaker manufactures the MG ZS subcompact SUV that was launched in November 2017, MG3 subcompact car, MG5 subcompact sedan, MG6 mid-size sedan, and MG GS SUV.

MG GS MG3
MG GS (Bangkok international motor show 2018) MG3 (Bangkok international motor show 2018)

 

Tata starts production at new assembler

Tata terminated the assembly contract with Thonburi Automotive Assembly Plant Co at the end of April 2017, and signed a new contract with Bangchan General Assembly Co., Ltd. (BGAC) in Bangkok. According to the news report in May, Tata invested THB 500 million to build a new plant. Production started there in October. Under the contract, BGAC will annually produce 8,000 units of the Xenon pickup truck and 2,500 units of Super Ace Mint light-duty truck for a period of five years. BGAC also produces Foton Motor's pickup trucks and other trucks.

 

Subaru to start production with Tan Chong group in Thailand in 2019

In February 2017, Subaru established Tan Chong Subaru Automotive (Thailand) joint venture with TC Manufacturing and Assembly (Thailand) (TCMA TH), a unit of Malaysia's Tan Chong group. The group plans to invest USD 150 million to produce 10,000 Subaru vehicles per year in Thailand. Production will start in 2019 with an assembly of knocked down kits for the Forester SUV. The joint venture is expected to use the Tan Chong group's Lat Krabang Plant, which currently assembles heavy-duty trucks.

 

Mazda opens engine machining factory at powertrain plant

In January 2018, Mazda announced that it opened an engine machining factory at Mazda Powertrain Manufacturing (Thailand) Co., Ltd. (MPMT) in Chonburi province. With an investment of JPY 22.1 billion, Mazda plans to raise its annual production capacity of engines at MPMT from 30,000 to 100,000 units by building a machining factory and increasing the capacity of the existing engine assembly line. In addition, Mazda will start production of the SKYACTIV-G 2.0 gasoline engine that will be supplied to Mazda's production facilities in Malaysia and Vietnam, as well as Thailand.


Recent activities of Toyota, Isuzu, Honda, Mitsubishi, Nissan, Mazda, and Suzuki

Toyota aims for 2018 sales of 300,000 units; launches Yaris ATIV and C-HR

2018 plan Toyota plans to increase its sales volume by 24.9% y/y to 300,000 units in 2018. Sales volume of passenger cars is expected to grow 17.0% to 113,000 units and commercial vehicles to rise 30.3% to 187,000 units. Among commercial vehicles, sales of 1-ton pickup trucks including PPVs are projected to increase 17.6% to 157,000 units.
In 2018, Toyota will introduce four innovative technologies into Thailand: next-generation hybrid technology, TNGA (Toyota New Global Architecture) platform, Toyota Safety Sense, and Toyota T-Connect Telematics.
Yaris ATIV A subcompact sedan launched in August 2017. Its exterior was based on the Vios. Like the Yaris subcompact hatchback, the sedan version is equipped with a 1.2-liter four-cylinder gasoline engine mated to a CVT. Its price starts from THB 469,000.
C-HR A compact SUV launched in November 2017. The SUV incorporates four new advanced technologies: next-generation hybrid technology, TNGA platform, Toyota Safety Sense, and Toyota T-Connect Telematics. It competes with the Honda HR-V and Mazda CX-3. Its price starts from THB 1 million.
Export of Hilux to Japan In October 2017, Toyota started export of the Hilux, a pickup truck of the IMV (Innovative International Multi-purpose Vehicle: strategic models for emerging markets) Series, from its Banpho plant in Thailand to Japan. Toyota produces 60% of its overall 1-ton pickup trucks in Thailand. The automaker manufactures the IMV Series vehicles at its Banpho Plant and exports them to 122 countries.

 

Isuzu reveals its sales and export plans for 2018

・Isuzu plans to increase its sales volume by 4.6% y/y to 168,000 units in 2018. The automaker forecasts that the Thai market will expand by 3.4% to 900,000 units.
・Isuzu expects to increase its exports including fully assembled units and knocked down kits by 3% y/y to 165,000 units. In addition to expansion of shipments to existing destinations such as Australia and the U.K., Isuzu is seeking new destinations like Iran and Argentina. The company will also start export of knocked down kits of a heavy-duty truck, which was unveiled in Thailand in April 2017, to Indonesia, the Philippines and Vietnam on a trial basis.

 

Honda launches new Civic Hatchback and CR-V

New Civic Hatchback The hatchback version of the Civic was launched in March 2017. It features a sporty design as well as high-performance driving and fuel efficiency. It comes with a 1.5-liter VTEC TURBO engine and a CVT, both of which were developed under Honda's Earth Dreams Technology. Its price starts from THB 1,169,000.
New CR-V The fifth-generation CR-V launched in March 2017. This three-row seven-seat SUV offers a diesel engine version for the first time. The diesel version is equipped with a 1.6-liter i-DTEC diesel turbo engine combined with a nine-speed automatic transmission. The gasoline version comes with a 2.4-liter DOHC i-VTEC engine mated to a CVT.

 

Nissan introduces Note as the third eco-car

Note A compact hatchback launched in January 2017. The model is powered by a 1.2-liter three-cylinder gasoline engine combined with a CVT. Its fuel economy is rated at 20km/liter and CO2 emissions at 120g/km. It is the third Nissan model introduced under the first phase of the eco-car program following the March and Almera. Its price starts from THB 568,000.

 

Mitsubishi unveils its market share and export plans for 2018

・In 2018, Mitsubishi plans to launch two new models including the Xpander, a new minivan, and aims to acquire a market share of over 8% (it was 8% in 2017).
・Mitsubishi intends to raise its export volume from Thailand from 270,000 in 2017 to 320,000-330,000 units in 2018.

 

Mazda reveals its 2018 plan; launches new CX-5; to be supplied next-generation pickup from Isuzu

2018 plan Mazda plans to increase its sales volume by 15% y/y to 58,000 units in 2018.
New CX-5 The second-generation CX-5 launched in November 2017. While the new SUV uses the same platform, engine, and transmission from the previous model, its exterior and interior have been redesigned. It is equipped with a 2.2-liter diesel turbo engine or 2.0-liter gasoline engine mated to a six-speed automatic transmission. Its price starts from THB 1.29 million.
End of production of BT-50 In October 2017, Mazda terminated production of the BT-50 pickup truck at the Rayong plant of Auto Alliance (Thailand), a joint venture established with Ford. Isuzu will supply the D-MAX to Mazda as its next-generation pickup truck. Isuzu will develop a platform and engines for the new pickup truck while Mazda will design the body. Isuzu plans to set aside an annual production capacity of 40,000 units at its Chachoengsao plant for Mazda.

 

Suzuki launches new Swift as eco-car

New Swift A compact hatchback launched in February 2018. The model is equipped with a 1.2-liter four-cylinder gasoline engine mated to a CVT. It meets the stricter rules for the second phase of the eco-car program. It competes with the Mazda 2, Mitsubishi Mirage, Nissan March and Toyota Yaris. Its price starts from THB 494,000.

 

Suzuki Swift Nissan Note Honda Civic Hatchback
Suzuki Swift
(Bangkok international motor show 2018)
Nissan Note
(Bangkok international motor show 2018)
Honda Civic Hatchback
(Bangkok international motor show 2018)


Recent activities of Ford, GM and SAIC Motor-CP

Ford launches high-performance version of Ranger; withdraws from eco-car program

Ranger Raptor A high-performance version of the new Ranger pickup truck unveiled in February 2018. The version is planned to go on sale within 2018. Ford will produce it in Thailand and sell it in the country as well as Asia-Pacific region including Australia. The Ranger Raptor outshines the regular Ranger in off-road drivability owing to an upgraded chassis, brakes, and suspension. It comes with a 2.0-liter inline four-cylinder twin turbo diesel engine.
Retreat from eco-car program In December 2017, Ford reportedly decided to withdraw from the second phase of the Thai government's eco-car program. The automaker had announced a plan in 2014 to invest THB 18.2 billion to produce a green car under the eco-car program. Nonetheless, after re-examining the Thai market and the company's key segments, Ford decided to pull out of the program. In 2017, Ford recorded total sales of 56,156 vehicles in Thailand. The Ranger pickup truck accounted for 79.3% of the total at 44,533 units.

 

GM to terminate production and sales of passenger cars in Thailand

In March 2017, it was reported that GM ended production and sales of sedans in Thailand. The automaker will produce and sell only pickup trucks such as the Colorado, and SUVs including the Trailblazer and Captiva in the country. The OEM will continue sales of the Cruze sedan until the end of the model product life cycle. Production of the Cruze already ended in 2017. GM has no plan to introduce new passenger car models into Thailand in the future.

Ford Ranger Raptor Chevrolet Colorado
Ford Ranger Raptor
(Bangkok international motor show 2018)
Chevrolet Colorado
(Bangkok international motor show 2018)

 

SAIC Motor-CP reveals 2018 sales plan; launches the MG ZS

2018 sales plan In 2017, SAIC Motor-CP's sales of the MG brand vehicles in Thailand increased 45% y/y to 12,013 units. The automaker aims to sell 30,000 units in 2018. SAIC Motor-CP forecasts that the Thai automotive market will expand to over 950,000 units in 2018. With a view that the ratio of SUVs will grow from 20% in 2017 to 30% in 2018, the company intends to focus its efforts on production and sales of SUVs including the MG ZS and MG GS.
MG ZS A subcompact SUV introduced in November 2017. It is equipped with a 1.5-liter four-cylinder gasoline engine mated to a four-speed automatic transmission or a 1.0-liter three-cylinder/1.5-liter four-cylinder direct injection turbo engine combined with a six-speed automatic transmission with torque converter or seven-speed DCT. Its price starts from THB 679,000.


(Appendix) Major OEMs Vehicle Assembly Plants in Thailand

Major OEMs' plants in Thailand

Plant Annual production capacity
(1,000 units)
2017 production volume
(1,000 units)
Models being produced
Toyota Motor Thailand (TMT) Samrong 230 532 Toyota Hilux Vigo, Fortuner
Ban Pho 220 Toyota Hilux Vigo, Fortuner
Gateway 1 220 Toyota Camry, Camry HV, Vios, Corolla, Wish, eco-car (Yaris)
Gateway 2 80
Toyota Auto Works Samutprakarn 20 Toyota Hiace
Hino Motors Mfg. (Thailand) Bang Pakong 27
 (March 2017-)
12 Hino trucks & buses
Nissan Motor (Thailand) Samutprakarn 1 220 132 Nissan Navara, Teana, Sylphy, Pulsar,
X-TRAIL, X-TRAIL HV,
eco-car (March, Almera/Latio, Note)
Samutprakarn 2 150 NP300 Navara
Honda Automobile (Thailand) Ayutthaya 1 150→0
(April 2017)
107 eco-car (Brio, Brio Amaze)
(Production was transferred to Ayutthaya 2 in April 2017.)
Ayutthaya 2 150 Accord, Accord HV, Mobilio, CR-V, HR-V, BR-V
Prachinburi 120 119 Civic, City, Jazz (Fit), Jazz HV
Mitsubishi Motors (Thailand) Laemchabang 1 90 212 Lancer EX, Pajero Sport
Laemchabang 2 220 Pajero Sport, Triton (L200)/Fiat Fullback/Ram 1200
Laemchabang 3 200 131 eco-car (Mirage, Attrage)
Isuzu Motors Company (Thailand) Samrong 260 248 Isuzu D-Max, mu-X, mu-7, light-/medium-duty trucks
Gateway 180 (2017-) Isuzu D-Max, mu-7, pickup trucks for Mazda, pickup trucks (knocked down kits for export)
Suzuki Motor (Thailand) Rayong 100 57 eco-car (Swift, Celerio, Ciaz)
AutoAlliance (Thailand) Rayong Pickup: 100 201 Ford Ranger, Everest,
(Production of Mazda BT-50 ended at the end of 2017.)
Passenger cars: 120 97 Mazda2, Mazda3, CX-3
Ford Thailand Manufacturing Rayong 150 22 Ford Focus, EcoSport, Fiesta, Ranger
General Motors (Thailand) Rayong 180 57 Chevrolet Captiva, Colorado, Trailblazer
BMW Mfg. (Thailand) Rayong 20 20 BMW 1/3/4/5/7 Series, X1, X3, X4, X5, MINI Countryman, BMW PHV versions
Thai-Swedish Assembly Samutprakarn Volvo: 4.5 Volvo: 0.4 Volvo trucks & buses
UD: 20 UD: 4 UD Quester, Croner
Tan Chong International Bangkok Beiqi Foton: 20.2 N/A Auman trucks
Subaru: 0→10 (2019-) - Subaru Forester (2019-)
Thonburi Automotive Assembly Plant Samutprakarn 19 12 M-Benz C/E/S/M/GLE-Class,
PHV(C, E, S, GLE)
(Production of Tata vehicles ended in April 2017.)
Y.M.C. Assembly Bangkok 24 N/A Mitsuoka models, VW models
SAIC Motor - CP Rayong 1 50→0
(December 2017)
12 (Production was transferred to Rayong 2 in December 2017)
Rayong 2 0→100
(December 2017)
MG6, MG3, MG5, MG GS, MG ZS
(Operations started in December 2017.)
Bangchang General Assembly Bangkok 20.5
(October 2017-)
N/A Tata: Xenon, Super Ace Mint
Foton: Tunland, Aumark 4, Aumark 6, View CS2
Scania (Thailand) Chachoengsao 0.8 0.6 Scania trucks & buses
RMA Automotive Laemchabang 0→3 (2018-) - FUSO trucks (Operations to start in 2018.)

Source: OEMs' websites, press releases and various media reports

 



Production forecast by LMC Automotive: Thai light vehicle production to increase to 2.26 million units in 2021

(LMC Automotive, February 2018)

Thai light vehicle output in 2017 grew by 2.2% year-over-year (y/y) to 1.96 million units, an improvement on the 4% decline seen in H1 2017. The better result was largely driven by higher export volumes in Q3 (3% y/y). Exports dropped by 8% and 12% y/y in Q1 and Q2, respectively.

Two key factors will impact Thai production volumes in the medium and longer term: (1) Toyota is set to reduce planned production volumes of the Vios, following the launch of the Yaris ATIV. If this new sedan version of the Yaris proves to be popular with Thai consumers, the automaker may decide to drop the next-generation Vios from its production schedule; and (2) Ford may focus its production efforts exclusively on the pickup truck and pickup-based SUV segments, and end all passenger vehicle production (i.e., Fiesta and Focus) in Thailand. According to LMC Automotive's forecast (February 2018), Thai light vehicle production is expected to increase slightly to 1.98 million units in 2018. Thereafter, Thai output will continue to grow and reach 2.26 million units in 2021, up 15.1% compared to 2017.

Toyota, the largest automaker in Thailand, began exports of the Hilux Revo pickup to Japan since August 2017, following the decision in 2002 to shift its entire Japanese pickup production to Thailand. The company is targeting export volumes of around 300 pickups per month. In 2017, Toyota's output in Thailand declined by 4.3% y/y to 0.53 million units. LMC Automotive forecasts that, after 2018, Toyota's production is expected to increase over the next four years and reach 0.68 million units in 2021, up 28.2% compared to 2017.

 

Thai light vehicle production forecast by make (LMC Automotive, February 2018)

(Units)

SALES GROUP GLOBAL MAKE 2015 2016 2017 2018 2019 2020 2021
Total 1,891,927 1,921,319 1,963,556 1,978,547 2,019,864 2,172,896 2,260,834
Toyota Group Toyota 632,887 555,907 531,937 606,249 661,631 671,228 682,940
Hino 255 1,618 1,893 1,384 1,427 1,421 1,397
Toyota Group sub-total 633,142 557,525 533,830 607,633 663,058 672,649 684,337
Renault-Nissan-Mitsubishi Mitsubishi 330,170 368,795 355,878 320,409 324,635 341,921 344,770
Nissan 139,951 113,197 131,895 128,483 145,305 198,227 205,104
Renault-Nissan-Mitsubishi sub-total 470,121 481,992 487,773 448,892 469,940 540,148 549,874
Isuzu Motors Isuzu 229,752 233,789 236,725 233,385 240,645 269,146 268,786
Honda Group Honda 170,598 200,004 225,540 213,015 206,493 220,216 252,102
Ford Group Ford 138,473 166,148 185,216 169,966 140,971 154,863 173,868
Mazda Motors Mazda 121,130 134,981 134,931 132,491 124,291 111,183 112,963
Isuzu 0 0 0 0 0 23,972 35,191
Mazda Motors sub-total 121,130 134,981 134,931 132,491 124,291 135,155 148,154
Suzuki Group Suzuki 54,371 56,275 57,142 69,600 61,163 65,111 67,359
General Motors Group Chevrolet 51,077 55,227 56,830 49,077 56,191 58,197 62,729
BMW Group BMW 8,447 15,843 19,981 19,730 21,111 21,388 19,921
MINI 593 486 114 206 495 539 469
BMW Group sub-total 9,040 16,329 20,095 19,936 21,606 21,927 20,390
Daimler Group Mercedes-Benz 7,850 8,900 12,272 15,131 12,713 12,377 12,688
Fuso 1 37 0 0 0 0 0
Daimler Group sub-total 7,851 8,937 12,272 15,131 12,713 12,377 12,688
SAIC Group MG 4,538 8,603 11,768 15,200 11,440 11,593 9,572
Roewe 559 171 20 921 905 1,023 801
SAIC Group sub-total 5,097 8,774 11,788 16,121 12,345 12,616 10,373
Subaru Corporation Subaru 0 0 0 0 6,170 6,385 6,305
Dongfeng Motor Dongfeng 1,103 1,294 1,314 1,889 2,383 2,249 2,185
Tata Group Tata 172 44 100 1,411 1,895 1,857 1,684

Source: LMC Automotive "Global Automotive Production Forecast (February 2018)"
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
For more detailed information or inquiries about forecast data, please contact LMC Automotive.



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